i 


i 


LIQUOR    LAWS 


UNITED  STATES; 


THEIR      SPIRIT     AND      EFFECT 


G.    THOMANN, 

Author  of  "Rkal  and  Imaginary  Effects  of  Intemperance." 


8  0  5  0     7 

NEW    YORK : 
THE  UNITED  STATES  BREWERS'  ASSOCIATION. 


ISSS. 


H  Y.  Economical  Printing  Co.  24  Vesey  St.,  New  Yobk. 


S0  7E 


PEEFACE. 


The  liquor  traffic,  in  all  its  bearings  upon  the  moral  and 
social  condition  of  man,  has  recently  been  made  the  subject  of 
methodical  enquiries  in  very  many  European  countries,  and  a 
mass  of  extremely  valuable  material  has  already  been  and  is 
still  being  gathered  there  for  the  purpose  of  establishing  a  scien- 
tific basis  for  future  legislation.  Similar  efforts  are  at  present 
being  made  in  the  United  States,  and  it  is  to  be  hoped  that 
fairness,  impartiality,  and  an  unselfish  regard  for  the  welfare 
of  the  whole  country  may  guide  them.  This  book  is  offered 
as  an  unpretending  contribution  to  these  efforts.  It  claims  no 
merit  save  that  of  strictest  truthfulness  in  the  representation 
of  the  spirit  and  effect  of  the  liquor  laws  of  this  country.  The 
nature  of  its  subject-matter  required  a  separation  of  the  laws 
enacted  by  Congress  from  those  enacted  by  the  legislatures 
of  the  States.  The  former  laws  are  reviewed  in  the  present 
volume ;  the  latter  will  form  the  subject  of  another  volume, 
to  be  published  hereafter. 

The  Author. 

New  York  City 
April,  1885. 


448341 


1 


CONTENTS. 


Page. 

Chapter  I.— Fiscal  task  of  the  first  Congress.  Pressure  in  favor  of  the  protection 
and  eneouragement  of  domestic  manufactures.  Causes  and  evidences  of  this 
pressure.  Debate  on  Madison's  customs  proposition.  Arguments  for  and 
against  protection  ;  for  and  against  high  rates  of  duty  on  distilled  liquors. 
Moral  aspect  of  such  duties.  Unanimity  of  opinions  in  regard  to  expedi- 
ency, from  a  moral  standpoint,  of  encouraging  the  manufacture  of  malt 
liquors.  The  first  revenue  law.  The  drift  of  popular  sentiment  in  reference 
to  the  question  of  temperance.  Conclusions  as  to  spirit  of  the  first  revenue 
law,  in  its  bearing  on  the  liquor  traflic  3-33 

Chapter  II.— Product  of  the  import  duties  under  the  preceding  Act.  Additional 
revenue  necessary.  Hamilton's  propositions.  Increase  of  specific  duties, 
and  introduction  of  internal  taxes  on  distilled  spirits  recommended.  Hamil- 
ton's views  on  the  desirability  of  encouraging  the  manufacture  of  malt  liq- 
uors, for  moral  reasons.  The  work  of  the  second  session  of  Congress.  Re- 
jection of  excise  system.  Enactment  of  Jaws  increasing  import  duties,  and 
regulating  collection  thereof.  Hamilton's  revenue  proposition  again  dis- 
cussed in  next  session  of  Congress.  Opposition  to  excise  system  by  South- 
ern members.  Grounds  of  opposition.  Enactment  of  law  imposing  addi- 
tional duties  on  imported,  and  excise  duties  on  domestic  spirits.  Conclusion 
as  to  the  spirit  of  these  laws 34-55 

Chapter  III.— Review  of  the  origin,  nature  and  extent  of  the  discontent  pro- 
voked by  the  excise  law.  Opposition  to  Hamilton's  fiscal  system.  Jefi"er- 
son's  attitude.  The  alarming  state  of  afiairs  in  Western  Pennsylvania. 
Brief  review  of  outrages  committed  upon  excise  ofiicers  up  to  the  end  of 
1791.  Hamilton's  report  on  manufactures,  and  on  the  excise  law.  His  re- 
commendations on  both  subjects.  Act  increasing  duties  on  distilled  spirits 
and  malt  liquors.  Protective  features  of  this  Act.  Modification  of  the  Act 
for  laying  internal  duties  on  spirits 56-83 

Chapter  rv. — The  Western  or  whiskey  insurrection :  Violent  opposition  to  the 
establishment  of  excise  oflScers.  Attack  on  Captain  Faulkner.  Meeting  at 
Pittsburgh.  Seditious  resolutions  adopted.  Proclamation  by  the  President. 
Reign  of  terror  inaugurated  by  Tom  the  tinker.  Continuation  of  outrages 
upon  officers  and  complying  distillers.  Attack  on,  and  destruction  of,  Gen- 
eral Neville's  house.  Seven  thousand  armed  rioters  march  into  Pittsburgh. 
Bradford's  design  to  revolutionize  adjoining  States  and  form  an  independent 
State.  Mails  robbed.  Second  proclamation  by  the  President.  Militia 
called  out.  Fruitless  efi'orts  of  a  peace  cor  amission.  Advance  of  the  army. 
Flight  of  the  more  violent  leaders.  Re  olutions  of  submission.  Arrival 
of  the  army  at  Parkison's  Ferry.  Insurgents  dispersed  and  order  re- 
established       84-108 


yi,  CONTENTS. 

Chapter  v.— Perfectin?  the  revenue  service:;  numljer  and  compeuBation  of  officers. 
Licenses  to  retailers  of  spirits  and  wines.  Modifications  of  tlie  excise  law 
in  favor  of  country  distillers.  Repeal  of  internal  duties ;  its  causes.  Effects 
of  the  various  laws  on  the  internal  taxation  of  distilled  spirits.  Com- 
parative table  showing  production,  imports,  exports  and  consumption  of 
spirits  during  the  operation  of  the  excise  law.  and  after  Its  repeal,  up  to 
1810.  Effect  of  import  duties  upon  fermented  liquors.  State  of  grape- 
culture.    The  brewing  industry  in  1810  ;  difficulties  retarding  its  progress. . .  109-137 

Chapter  \T:.— Fiscal  policy  under  Jefferson's  and  Madison's  administrations. 
Gallatin's  financial  views.  Protection  of  domestic  manufactures.  Gallatin's 
propositions  on  the  subject.  Supposition  that  in  case  of  war  the  doublinc:  of 
external  duties  would  meet  all  exigencies.  Spirits  singled  out  as  capable  of 
bearing  heaviest  external  tax.  Timid  policy  in  relation  to  internal  liquor 
traffic.  Eflect  of  impending  war  with  Great  Britain.  Change  of  fiscal  policy ; 
retnrn  to  Hamiltonian  principles.  Excise  system  proposed  and  ignored. 
Import  taxes  doubled.  Reverses  of  war.  Madison  urges  imposition  of 
internal  taxes.  Congress  acts  on  recommendation.  Internal  revenue  system 
enlarged;  additional  excise  duties  on  spirits.  Termination  of  war.  Gradual 
reduction  of  external  and  internal  taxes,  and  final  abolition  of  the  latter 
duties.  Monroe's  policy ;  forecast  of  high  protective  measures.  Retrospect; 
effects  of  preceding  laws 128-148 

Chapter  YII.— The  relation  which  the  aversion  to  excises  and  the  protec- 
tive idea  bore  to  the  question  of  temperance.  What  the  protection  of  spirits 
was  intended  to  accomplish  for  agriculture.  The  wisdom  of  protecting 
spirits,  and  the  desirability  of  preventing  their  excessive  consumption. 
Why  excises  were  not  permanently  applied  to  accomplish  the  latter.  If  it 
be  proper  to  use  the  taxing  power  in  one  form  in  order  to  create  and  extend 
manufactures,  it  ought  to  be  proper  to  use  it  in  another  form  for  restricting 
those  industries  which  militate  against  such  economic  policy.  Reasons  for 
assuming  that  under  certain  circumstances  a  permanent  excise  on  spirits 
would  have  been  feasible.  Results  of  absence  of  internal  taxes.  Excessive 
drinking  habits  of  the  rural  population  and  consequent  reaction,  leading  to 
the  opposite  extreme    149-157 

Chapter  Vm.— The  era  of  high  protective  tariffs.  Party  division  on  the  subject. 
Attitude  of  Calhotin  before  and  after  the  Missouri  compromise.  Tariff  of 
1824.  Temperance  policy  in  regard  to  use  of  wine.  Congress  grants  land  to 
French  vintners.  Duties  on  wines  reduced  for  moral  reasons.  Protectionist 
efforts  in  favor  of  whiskey.  Pennsylvania  farmers  ask  for  prohibition  of 
importation  of  spirits.  Futile  efforts  to  reintroduce  an  excise  on  spirits. 
The  struggle  for  the  protection  of  whiskey  in  1828.  Mixed  state  of  afi'airs  : 
'•Yankee  "  mm  ostracised ;  whiskey  described  as  palatable  and  fashionable. 
Wrangle  over  the  duty  on  molasses.  Yankeedom  and  its  alleged  frauds 
arraigned.  Interesting  debate  on  the  expediency  of  creating  new  niarkets 
for  whiskey.  Tariff  of  1828.  Increase  of  imposts  on  spirits  and  molasses. 
Revocation  of  unjust  clause  in  regard  to  latter  article  in  1830.  Revision  of 
duties  on  wines.  Extensive  frauds  upon  the  Government  by  importers  of 
wines.  The  tariff  acts  of  laSO  and  1833.  Nullification  of  tariff.  Calhoun  and 
Jackson.  Compromise  act  of  1833.  Reduction  of  duties.  Financial  crisis 
nnder  Van  Buren's  administration.  Precarious  condition  of  treasury  under 
Tyler's  administration.  Another  conflict  and  compromise.  Increase  of 
duties  by  tariff  act  of  1842.  Fillmore  on  excises.  Further  changes  of  the 
laws.    Conclusions  as  to  spirit  and  effect  of  laws  158-1 79 


CONTENTS.  VII. 

CnAriEr.  IX.— Results  of  the  "free  whiskey"  policy.  Inebriety  in  the  raral  dis- 
tricts ;  clergymen,  -vvomeu  and  children  addicted  to  the  vice.  Testimony  of 
temperance  authors.  Work  of  temperance  societies  ;  their  moral  efl'orts 
directed  against  ardent  spirits  ;  beneficent  influence  of  their  agitation. 
Struggle  between  moderates  and  extremists.  Split  in  the  temperance  party 
in  1S36.  The  agitation  transplanted  from  the  domain  of  moral  suasion  to 
the  legislative  field.  Fermented  drinks  classed  with  ardent  spirits.  Absurd- 
ity of  means  and  ends.  Various  agencies  counteracting  the  evils  of  drunk- 
enness: progress  of  the  nation:  influx  of  emigrants;  growth  of  brewing 
industry  and  grape-culture.  Walker,  in  1845,  proposes  a  tariff  for  revenue 
only  ;  Mexican  war  prevents  adoption  of  all  his  propositions  ;  his  principles 
acted  on.  Continued  opposition  to  excise  en  spirits.  Revenue  tariff  of 
1S57  supplanted  by  Morrill  tarifi'.    State  of  the  drink  question  in  1860 180-197 

Chapter  X.— Convocation  of  37th  Congress.  Condition  of  the  Treasury  in  1861. 
Fiscal  necessities  growing  out  of  the  rebellion.  Increase  of  import  duties 
and  imposition  of  direct  taxes.  Internal  taxes  postponed.  Condition  of 
Treasury  in  1862.  Internal  taxes  on  spirituous  and  malt  liquors,  aud  on 
licenses  to  dealers  discussed.  The  temperance  question  discussed  in  both 
Houses  of  Congress.  Discrimination  in  favor  of  malt  liquors  advocated  ; 
scientific  testimony  in  support  of  such  advocacy.  The  status  of  the  Prohibi- 
tion States  and  of  their  Congressional  representatives.  Inconsistency  of 
advocates  of  Prohibition ;  the  futility  of  their  schemes  demonstrated  by 
their  own  statements.  Differences  as  to  rates  of  tax  on  distilled  spirits,  and 
as  to  the  expediency  of  taxing  stock  on  hand.  Evasion  of  tax  by  distillers 
predicted.  Text  of  revenue  law  in  relation  to  intoxicants.  Increase  of 
import  duties  in  1862.  Increase  of  internal  tax  on  spirits  in  1864.  Specula- 
tion and  fraud  combining  to  frustrate  objects  of  law.  Appointment  of 
special  revenue  commission  in  1865:  their  report  and  recommendations. 
Modification  of  law  in  1868 198-230 

■  Chapter  XI.— Epitome  of  the  policy  of  the  Government  and  the  spirit  of  the 
laws  since  1860.  Prejudice  against  excises  completely  wiped  out,  so  far  as 
intoxicants  are  concerned.  Willingness  of  distillers  and  brewers  to  be 
taxed.  Faithful  adherence  to  the  policy  of  favoring  malt  liquors  for  moral 
reasons.  Universal  desire,  from  the  beginning  of  our  Government  to  pre- 
sent day,  to  substitute  malt  liquors  for  ardent  spirits.  Hamilton's  aims 
realized.  The  operation  of  the  revenue  laws  during  the  first  ten  years  of 
their  existence.  Effect  of  speculation  and  frauds ;  modifications  of  laws 
with  a  view  to  preventing  both.  Brief  review  of  external  taxation  on  intoxi- 
cants since  1860.  Results  of  internal  taxation  since  1874.  Marvellous 
growth  of  brewing  industry  ;  consumption  of  ardent  spirits  decreased  by  over 
fifty  per  cent. ;  the  objects  of  the  temperance  movement  realized.  The 
people  of  the  United  States  among  the  first  of  temperate  nations  ;  their 
present  policy  adopted  by  European  Governments,  and  sustained  by  scientific 
investigations.  What  is  needed  to  perpetuate  and  multiply  the  fruits  of 
wise  laws.    Revenue  tables 231-251 

Appendix.— Addenda  to  Chapters  HI.  and  V. : 

Fauchet's  correspondence,  and  extracts  from  Digest  of  Manufactures,  1810. .  232-250 
Tables  of  Imports  and  Exports  of  distilled  and  fermented  liquors,  from 

1791  to  1883. 


LIQUOR  LAWS  OF  THE  UNITED  STATES ; 

THEIR   SPIRIT   AND   EFFECT. 


CHAPTER  I. 


FISCAL  TASK  OF  THE  FIRST  CONGKESS,  PRESSTTRE  IN  FAVOR  OF 
THE  PROTECTION  AND  ENCOURAGEMENT  OF  DOMESTIC  MANU- 
FACTURES. CAUSES  AND  EVIDENCES  OF  THIS  PRESSURE. 
DEBATE  ON  MADISOn's  CUSTOMS  PROPOSITION.  ARGUMENTS 
FOR  AND  AGAINST  PROTECTION;  FOR  AND  AGAINST  HIGH 
RATES  OF  DUTY  ON  DISTILLED  LIQUORS.  MORAL  ASPECT  OF 
SUCH  DUTIES.  UNANIMITT  OF  OPINIONS  IN  REGARD  TO  EX 
PEDIENCY,  FROM  A  MORAL  STANDPOINT,  OF  ENCOURAGING 
THE  MANUFACTURE  OF  MALT  LIQUORS.  THE  FIRST  REVENUE 
LAW.  THE  DRIFT  OF  POPULAR  SENTIMENT  IN  REFERENCE 
TO  THE  QUESTION  OF  TEMPERANCE.  CONCLUSIONS  AS  TO 
SPIRIT  OF  THE  FIRST  REVENUE  LAW,  IN  ITS  BEARING  ON  THE 
LIQUOR   TRAFFIC. 

In  grappling  with  the  fiscal  results  of  the  Revolutionary 
war,  the  first  Congress  of  the  United  States,  confronted  with 
a  depleted  treasury  and  an  enormous  debt,  the  interest  of 
which  had,  owing  to  the  impotency  of  the  Continental  Con- 
gress, accumulated  to  a  startling  figure,  could  not  in  the 
nature  of  things  concede  more  than  secondary  importance  to 
any  fixed   policy,   to   any   concisely  formulated  principle   of 


4  LIQUOR    LAWS    OF   THE   UNITED   STATES. 

political  economy.*  The  controlling  idea,  the  one  object 
which,  obtruding  itself  with  imperative  directness  upon  the 
members  of  Congress,  temporarily  excluded  all  others,  was  to 
raise  revenue,  to  rescue  the  tottering  credit  of  the  country, 
and  to  establish  that  national  integrity  without  which  the 
political  independence  so  stubbornly  and  bravely  fought  for, 
so  gloriously  achieved,  would  inevitably  have  fallen  into  con- 
tempt. No  policy,  however  judicious  and  popular,  could  have 
prevailed  in  conflict  with  this  object. 

It  so  happened,  however,  that  the  mode  of  securing 
revenue,  the  method  of  taxation  most  favored,  because — 
then  as  now — deemed  least  oppressive,  bore  within  itself  the 
germ  of,  and  presented  the  form  and  machinery  for,  a  fixed 
economic  policy  which,  in  the  opinion  of  many  leading  minds 
of  that  day,  was  singularly  well  adapted  to  a  country  of  vast 
territorial  expanse,  of  immeasurable  natural  resources,  but 
having  a  scant  population,  almost  no  advanced  manufactures, 
and  few  means  of  bringing  to  the  surface  and  utilizing  the 
immense  and  diversified  wealth  hidden  under  the  soil. 

That  the  laying  of  an  impost  on  commodities  imported 
into  the  United  States  was  the  most  feasible  and  popular 
measure  of  obtaining  revenue,  seems  to  have  been  a  foregone 
conclusion  with  all  the  members  of  the  first  Congress.  The 
temptation  to  give  this  measure  a  protective  coloring  proved 
irresistibly  alluring.     For,  whatever  the  theoretical  opiuion  as 


*  From  the  report  of  the  Congressional  committee  appointed  to  pre- 
pare  an  estimate  of  supplies  requisite  for  the  year  1789,  it  appears  that 
the  arrearages  of  interest  up  to  the  31st  December,  1787,  amounted  to 
$8,123,124.55,  in  addition  to  which  sum,  Congress  had  to  provide  for 
two  years'  interest,  becoming  due  1st  January,  1790,  and  amounting  to 
$3,396,521.43;  making  a  total  of  $11,519,646,  or  more  than  one-fourth  of 
the  principal  of  the  entire  foreign  and  domestic  debt — the  former  amounting 
to  $10,070,307.  the  latter  to  $27,383,917.  (Am.  State  Papers ;  Finance, 
Vol.  I,  page  11.) 


CHAPTER   I. 


to  the  (jeneral  economic  expediency  of  a  protective  system  may 
have  been,  there  can  be  no  doubt,  that  a  strong,  wide-spread 
popular  sentiment  in  favor  of  the  encouragement  and  pro- 
tection of  domestic  manufactures  prevailed  in  very  many 
localities,  though  it  lacked  uniformity  of  origin  and  cause. 
But  the  very  complexity  of  motives,  views  and  interests,  from 
which  this  sentiment  sprang,  lent  additional  force  to  the 
efforts  for  its  realization.  While  in  many  instances  the  desire 
to  emancipate  the  new-born  nation  from  the  industrial  thral- 
dom of  England  was  intensified  by  the  animosity  which  the 
war  had  engendered  against  everything  English,  in  others  it 
was  undoubtedly  strengthened  by  an  honest  conviction,  how- 
ever erroneous,  that  industrial  protection  and  national  pros- 
perity bore  to  each  other  the  relation  of  cause  and  effect.  In 
certain  localities  this  sentiment  was  produced  by  purely  indus- 
trial considerations,  confined  to  a  few  manufactures  wh^ch 
formed  an  essential  source  of  the  wealth  of  the  people  imme- 
diately concerned.  The  greater  part  of  the  urban  population 
of  the  country  certainly  desired  protection  from  purely  selfish 
motives ;  whereas  among  the  rural  population  the  advocacy  of  a 
protective  system  was  believed  to  be  a  part  of  true  patriotism, 
even  if  for  no  other  reason  than  that,  in  case  of  war,  the 
absence  of  domestic  manufactures  implied — as  the  bitter  ex- 
periences of  the  struggling  colonies  had  demonstrated,  with 
painful  clearness — a  want  of  means  of  defense,  and,  accord- 
ingly, a  humiliating  and  withal  uncertain  dependence  upon 
foreign  nations  for  the  munitions  of  war.  Another  motive, 
actively  at  work  in  a  small  circle  of  far-seeing  statesmen,  was 
the  desire  to  acquire  national  prestige  and  recognition,  and  in 
this  case  the  impulses  of  patriotism  helped  to  formulate  a 
policy  which  aimed  at  the  utilization  of  a  -tariff,  with  differen- 
tial rates,  as  a  regulator  of  our  international  relations.  In- 
asmuch as,  under  the  circumstances  then  existing,  such  restric- 
tions would  necessarily  have  been  directed  against  the  very 


6  LIQrOR   LAWS    OF   THE    UNITED    STATES. 

country  from  -vrhicli  we  drew  the  greater  part  of  imported 
commodities,  and  as  the  condition  of  European  politics,  then 
extremely  unsettled  and  threatening,  prevented  the  United 
States,  for  a  time,  from  profiting  by  their  amical  relations 
with  other  maritime  powers,  the  indirectly  protective  effect 
of  this  motive  will  readily  be  perceived.  English  pre- 
cedent, it  is  frequently  claimed,  may  also  have  been  a 
factor  in  creating  a  Protectionist  predilection  ;  but  if  this 
assumption  be  admissible,  it  must  appear  as  a  somewhat 
singular  coincidence,  that  this  policy  was  americanized  by 
Congress  at  the  time,  when  it  was  beginning  to  lose  its  vitality 
in  the  land  of  its  birth.  Eor  it  is  a  historical  fact  that  Pitt's 
Customs  Consolidation  Act  of  1787,  growing  out  of  the  dis- 
content at  the  detrimental  effects  of  a  hopelessly  confused 
protective  system,  was  but  the  timid  precursor  of  the  income 
tax,  a  measure  by  which,  two  years  later — hence  at  the  time  of 
the  initial  session  of  our  first  Congress — the  anti-Protectionist 
movement,  then,  it  is  true,  very  far  yet  from  the  ultimate  con- 
summation of  its  objects,  was  inaugurated  in  England.  Yet, 
the  seemingly  flourishing  condition  of  English  manufactures 
and  commerce,  ascribed  by  an  influential  school  of  politicians 
to  a  restrictive  and  protective  policy,  may  have  had  its  weight 
with  those  Americans,  who  looked  up  to,  and  were  guided  by, 
English  precedents.  In  some  States,  the  law-making  power 
had  already  adopted  protective  measures,  so  constituted  as  tO' 
afford  encouragement  to  those  manufactures  which  the  neces- 
sitous state  of  things  of  -  preceding  periods  had  called  into 
existence. 

A  scrutinizing  study  of  the  meagre  stock  of  information 
contained  in  the  writings  of  politicians  and  statesmen,  compe- 
tent to  judge  of  the  state  of  affairs  at  the  period  in  question, 
leads  to  the  conviction,  that  the  cause  of  industrial  pro- 
tection found  many  able  advocates  even  in  those  circles 
ia  which  prevailed  the  opinion  that  agriculture  would  well- 


CHAPTER   I.  4 

iiis'Ii  forever  form  nine-tenths  of  our  wealth.  And  there 
is,  at  bottom,  no  inconsistency  in  this,  inasmuch  as  those 
holding  these  opinions,  very  correctly  believed  that  manu- 
factures afforded  great  encouragement  to  agriculture,  and 
deserved  the  fostering  care  of  government  for  this,  if  for  no 
other  reason.  Tench  Coxe,  for  instance,  subsequently  Com- 
missioner of  Interaal  Revenue  under  Hamilton's  administra- 
tion of  the  Treasury  Department,  a  statesman,  who  to-day 
would  be  styled  a  Free-Trader,  concluded  a  paper  read  before 
the  society  for  political  enquiries,  convened  in  Benjamin 
Franklin's  house.  May  11, 1787,  in  the  following  words :  "  That 
the  United  States  of  America  cannot  make  a  proper  use  of  the 
natural  advantages  of  the  country,  nor  promote  her  agricul- 
ture and  other  interests,  without  manufactures;  that  they  can- 
not enjoy  the  attainable  benefits  of  commerce  and  the  fisheries, 
without  some  general  restrictions  and  prohibitions  affecting 
foreign  nations." 

These  conclusions  are  somewhat  qualified  by  the  admoni- 
tion that,  in  establishing  manufactories  and  forming  these  res- 
trictions and  prohibitions,  care  must  be  taken  not  to  interfere 
with  the  settlement  and  improvement  of  the  soil. 

Quite  a  different  view  of  the  question  of  protection  is 
presented  in  a  petition  of  seven  hundred  and  twenty-nine 
tradesmen,  mechanics  and  others,  of  the  town  of  Baltimore, 
submitted  to  the  first  Congress,  April  11,  1789.  It  is  stated 
therein : 

"  That  since  the  close  of  the  late  war,  and  the  completion 
of  the  Revolution,  the  petitioners  have  observed  the 
manufacturing  and  trading  interests  of  the  country 
rapidly  declining,  while  the  wealth  of  the  people  hath 
been  prodigally  expended  in  the  purchase  of  those 
articles,  from  foreigners,  which  our  citizens,  if  pro- 
perly encouraged,  were  fully  competent  to  furnish. 


b  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

To  check  this  growing  evil  some  of  the  legislatures  in  the 
several  States  interposed  their  authority;  laws  were  by 
them  enacted  with  a  view  of  subduing,  or,  at  least,  di- 
minishing the  rage  for  foreign,  and  of  encouraging 
domestic  manufactures ;  but  the  event  hath  clearly 
demonstrated  that  no  effectual  provision  could  reason- 
ably be  expected  until  one  uniform,  efficient  govern- 
ment should  pervade  this  wide-extended  country.  The 
happy  period  having  now  arrived  when  the  adoption 
of  the  General  Government  gives  one  sovereign 
legislature  the  exclusive  power  of  laying  duties  upon 
imports,  the  petitioners  rejoice  at  the  prospect  thus 
afforded  them,  that  America,  freed  from  her  commercial 
shackles,  will  see  and  pursue  her  true  interest,  becom- 
ing independent  in  fact  as  well  as  in  name,  by  the 
encouragement  and  protection  of  American  manu- 
factures, as  it  is  an  universally  acknowledged  truth,  that 
the  United  States  contain  resources  amply  sufficient  to 
enable  them  to  become  a  great  manufacturing  country, 
and  only  want  the  patronage  and  support  of  wise  and 
energetic  government." 

The  petition  concludes  with  the  imperative  suggestion  that 
a  rate  of  duty,  sufficiently  high  to  afford  protection  be 
imposed  upon  one  hundred  and  twenty  enumerated 
articles,  among  them  beer,  ale  and  porter. 

A  similar  petition  by  the  mechanics  and  manufacturers  of 
New  York,  was  presented  to  Congress,  April  18,  1789,  and 
was  followed  by  many  others  of  similar  purport  and  tenor. 

This  cursory  and  incomplete  enumeration  of  the  causes  to 
whose  co-operation  must  be  ascribed  the  popular  agency  in 
favor  of  protection,  suffices,  no  doubt,  to  demonstrate  the  fact 
that  the  first  Congress  did  not  lack  a  pressure  from  without  to 
urge  it  to  the  adoption  of  such  a  policy.     At  all  events,  the 


CHAPTER    I. 


unbiased  reader  of  history  can  in  no  way  be  surprised  to  find 
that  the  intention  of  creating  and  fostering  domestic  manu- 
factures, particularly  those  of  which  England  had  so  easily 
acquired  an  almost  complete  monopoly  in  her  former  colonies, 
very  early  assumed  such  a  character,  that  a  disproportionately 
large  part  of  the  Congressional  discussion,  evoked  by  what  is 
known  as  the  Tariff  Act  of  1789,  was  devoted  to  this  subject. 
In  fact,  the  only  elementary  points  of  disagreement  among  the 
national  legislators,  in  reference  to  the  customs  tariff  proposed 
by  Madison,  embraced,  in  a  mild  form,  all  the  essential  features 
of  a  conflict  between  the  divergent  principles  of  Protection 
and  Free  Trade.  Aside  from  mere  detail,  the  only  other  note- 
worthy cause  of  differences  of  opinion — so  far  as  this  work  is 
concerned — was  of  a  moral  nature,  relating,  as  it  did,  to  the 
question  of  temperance. 

These  two  facts,  each  of  the  utmost  significance  in  its  bear- 
ing upon  the  liquor  question,  must  constantly  be  borne  in 
mind,  and  permitted  to  guide  the  student,  if  an  enquiry  into 
the  spirit  of  the  laws  relating  to,  and  in  any  manner  affecting 
the  liquor  trafiic  is  to  yield  reliable  conclusions. 

In  proposing  an  impost  on  articles  imported  into  the  United 
States,  Madison,  on  the  8th  day  of  April,  1789,  the  House  of 
Representatives  having  resolved  itself  into  a  committee  of  the 
whole  on  the  state  of  the  Union — disclosed  his  opinion  on  the 
subject  of  freedom  of  commerce,  in  such  a  way  that  from 
some  of  his  utterances,  torn  from  the  entirety  of  his  argu- 
ment, it  might  be  made  to  appear  that  he  was  a  Free  Trader 
in  the  modern  sense  of  the  term.  "  Commerce,"  he  said  "  ought 
to  be  as  free  as  the  policy  of  nations  will  admit."  And  again  : 
"  I  own  myself  the  friend  of  a  very  free  system  of  commerce." 
The  former  expression  reveals  the  true  inwardness  of  his 
position. 

The  scope  of  the  freedom  of  commerce  was,  in  his  opinion, 
to  be   circumscribed  by  the  policy   of  nations.     Undecided 


10  LIQUOK    LAWS    OF   THE   UNITED    STATES. 

himself  as  to  what  policy  the  interests  of  the  entire  country 
would  dictate;  ignorantof  the  opinions  of  his  colleagues  ;  but 
appreciating  the  urgency  of  the  situation  and  overestimating, 
rather  than  undervaluing,  the  necessity  of  establishing  har- 
mony, by  avoiding  serious  parliamentary  conflicts,  he  proposed 
what  he  conceived  to  be  the  most  effective  means  of  speedily 
obtaining  revenue. — Without  fixing  the  rates,  he  proposed 
specific  duties  on  rum ;  all  other  spirituous  liquors ;  on  mo- 
lasses ;  on  Madeira  wine,  and  all  other  wines ;  on  tea,  pepper, 
sugar,  cocoa  and  coffee,  and  an  ad  valorem  duty  on  all  other 
commodities.  His  proposition  was  based  on  a  recommen- 
dation made  by  the  Continental  Congress  of  17S3,  and  at  that 
time  agreed  to  by  the  States. 

On  the  following  day  Lawrence,  of  New  York,  opposed  the 
laying  of  specific  duties  on  enumerated  articles,  and  advocated 
a  duty  at  a  certain  rate  per  cent,  on  the  value  of  all  imported 
goods.  He  feared  that  an  enumeration  would  create  confu- 
sion, besides  being  unjust,  since  it  was  not  then  known 
whether  the  articles  enumerated  were  able  to  bear  the  rate 
specified,  nor  whether  the  enumeration  included  all  articles 
capable  of  bearing  specific  duties.  Before  experience  had 
taught,  and  systematic  enquiries  demonstrated,  the  character 
and  extent  of  specific  duties,  best  calculated  to  further  the 
general  welfare,  a  temporary  ad  valorem  system  seemed  to 
him  x^referable  to  the  one  suggested.  Fitzsimmons,  of  Penn- 
sylvania, on  the  same  day,  first  introduced  the  subject  of 
protective  and  sumptuary  regulations.  Opposed  to  &  tempo- 
rary system  having  for  its  exclusive  object  the  raising  of  reve- 
nue, this  legislator  offered  an  addition  to  the  articles  enumer- 
ated in  Madison's  proposition,  stating,  that  in  doing  so  he  was 
actuated  by  a  desire  "  to  encourage  the  productions  of  our 
country,  to  protect  our  infant  manufactures  and  to  place  res- 
trictions upon  articles  which  are  termed  those  of  luxury.'"*  His 

*  See  Benton's  "  Abridgment  of  the  Debates  in  CongresB."    Vol.  L,  page  23. 


CHAFrER    I.  11 

additional  list  embraced  fifty  three  articles — beer,  ale  and 
porter  being  at  the  head ;  it  also  included  malt  and  cider. 
White,  of  Virginia,  and  Tucker,  of  South  Carohna,  seemed 
inclined  to  support  Madison's  proposition,  with  the  only 
difierence  that  both  thought  rum,  wine  and  sugar  could 
bear  an  ad  valorem  tax  in  addition  to  a  specific  duty ;  both 
were  unwilling  to  establish  a  permanent  system,  so  long  as  it 
was  not  positively  ascertained  what  the  interests  of  the  whole 
Union  required.  Not  a  word  was  uttered  by  either  member 
against  the  reasons  given  for  swelling  the  list  of  enumerated 
articles.  Hartley,  of  Pennsylvania,  dilated  on  the  protective 
theories  enunciated  by  Fitzsimmons.     He  said  : 

"  If  we  consult  the  history  of  the  ancient  world,  we  shall 
see  that  they  have  thought  proper,  for  a  long  time  past, 
to  give  great  encouragement  to  the  establishment  of 
manufactures,  by  laying  such  partial  duties  on  the 
importation  of  foreign  goods,  as  to  give  the  home 
market  a  considerable  advantage  in  the  price  when 
brought  to  market.  It  is  also  well-known  to  this  com- 
mittee that  thjere  are  many  articles  that  will  bear  a 
higher  duty  than  others,  which  are  to  be  taxed  with  a 
certain  impost  ad  valorem.  From  this  view  I  think  it 
both  politic  and  just  that  the  fostering  hand  of  the 
General  Government  should  extend  to  all  those  manu- 
factures which  will  tend  to  national  utility.  *  *  *  We 
have  been  forced  by  necessity,  and  various  other 
causes,  to  increase  our  domestic  manufactures  to  such  a 
degree  as  to  be  able  to  furnish  some  in  sufiicient  quan- 
tities to  answer  the  consumption  of  the  whole  Union, 
while  others  are  daily  growing  into  importance.  Our 
stock  of  material  is  in  many  instances,  equal  to  the 
greatest  demand,  and  our  artisans  sufficient  to  work 
them  up  even  for  exportation.     In  these  cases  I  take  it 


12  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

to  be  the  policy  of  every  enlightened  nation  to  give 
their  manufactures  that  degree  of  encouragement  ne- 
cessary to  perfect  them,  without  oppressing  the  other 
parts  of  the  community." 

In  a  lucid,  though  somewhat  timid  manner,  Madison,  and 
after  him  Boudinot,  of  New  Jersey,  remonstrated  against  acy 
attempt  to  sacrifice  the  general  welfare  to  local  interests  ;  but 
while  emphasizing  the  superiority  of  agriculture  over  all  other 
material  interests,  the  former  admitted  that  "  the  States  most 
advanced  in  population,  and  ripe  for  manufactures,  ought  to 
have  their  particular  interests  attended  to  in  some  degree," 
Nothino;  else  was  said  against  the  enunciation  of  Protectionist 
principles.  It  will  readily  be  inferred  that  the  advocates  of 
Protection  had,  thus  early,  the  advantage  of  a  plan  of  action, 
of  a  fixed  policy  based  on  a  knowledge  and  appreciation  of  the 
wants  of  their  respective  localities  and  constituents.  They 
were,  consequently,  more  direct  and  decided,  less  equivocal  in 
their  arguments  than  those  members  who,  for  the  want  of  in- 
formation and  experience,  were  neither  prepared  wholly  to  re- 
ject, nor  willing  entirely  to  adopt  the  Protectionist  idea ;  yet 
finally,  as  will  be  seen,  acceded,  reluctantly  perhaps,  to  a  tariff  of 
a  decided  Protectionist  coloring.  Nor  do  the  preliminary  argu- 
ments, of  which  the  foregoing  is  a  very  crude  epitome, 
contain  anything  warranting  the  supposition  that  the  conces- 
sions to  local  interests,  foreshadowed  in  the  last-quoted  words 
of  Madison,  would  have  been  withheld,  if  the  contemplation  of 
undefined  dangers,  which  seemed  to  threaten  the  harmony  and 
hence  the  stability  of  the  new  government,  had  not  produced 
a  feeling  of  timidity  and  a  mutual  inclination  to  temporize, 
conciliate  and  mediate.  On  the  contrary,  it  will  be  seen  that 
in  few  marked  instances,  even  Madison,  and  others  sharing 
his  views  generally,  advocated  Protection  from  choice  and 
conviction,  as,  for  example,  in  the  case  of  7naU  liquors. 


CHAPTER   I.  13 

When  on  the  third  day  of  the  discussion,  the  first  article  on 
Madison's  list,  rum,  came  up  for  consideration  (Sherman,  of 
New  Jersey,  having  moved  to  fix  the  rate  of  duty  at  fifteen 
cents  per  gallon),  the  discussion,  which  Smith,  of  Maryland, 
initiated  by  a  counter-proposition,  was  intercepted  by  Madi- 
son's motion  "that  the  Committee  rise,  in  order  to  give 
gentlemen  time  to  make  up  their  mincls  respecting  the 
quantum  of  impost  to  be  laid  on  each  article. — Three  days 
intervened  between  this  action  and  the  resumption  of  debate 
on  the  subject.  Lawrence  (N.  T.)  considered  twelve  cents  a 
sufficiently  high  duty  on  rum ;  he  feared  that  a  higher  rate 
would  prove  "  a  strong  temptation  for  smuggling,"  and  thus 
fail  to  attain  its  object.     He  said  : 

"  I  wish  to  lay  as  large  a  sum  on  this  article  as  good  policy 
may  deem  expedient;  it  is  an  article  of  great  con- 
sumption, and  though  it  cannot  be  reckoned  a  neces- 
sary of  life,  yet  it  is  in  such  general  use,  that  it  may  be 
expected  to  pay  a  very  considerable  sum  into  your 
treasury.  But,  when  we  consider  the  relative  propor- 
tion of  the  first  cost  of  it,  and  the  fifteen  cents  duty, 
we  shall  find  it  about  one-third.  This  is  too  high,  as 
the  risk  of  a  total  loss  may  be  ventured  in  order  to  save 
so  great  a  sum." 

Madison  favored  the  higher  rate,  and  adverted  to  popular 
sentiment  as  approving  of  such  measure ;  an  allusion  which 
Boudinot,  of  New  Jersey,  eagerly  seized  and  dilated  upon. 
He  stated  that  a  high  duty  would  answer  two  or  three  good 
purposes,  No  article  on  the  list,  he  thought,  would  yield  so 
large  a  revenue  as  this,  and  it  might  also  tend  to  discourage 
the  use  of  ardent  sj>irits.  Moral  considerations  seem,  however, 
not  to  have  been  overwhelmingly  potent  with  this  legislator, 
seeing  that  the  third  purpose  which  he  thouglit  a  high  duty 


14  LIQUOR   LAWS    OF   THE   UNITED   STATES. 

could  be  made  to  serve,  was  the  perfecting  of  our  own  distil- 
leries by  discouraging  the  "West  Indies  from  turning  their 
molasses  into  rum,  and  compelling  them  to  seek  our  market 
for  that  product.  His  position,  not  particularly  well  defended 
by  sound  logic,  was  assailed  by  Lawrence,  who  said : 

"  If  we  are  to  reason  and  act  as  moralists  on  this  point,  I 
am  certain  it  is  the  wish  of  every  member  to  prevent 
the  use  of  ardent  spirits  altogether,  for  their  influence 
on  the  morals  of  the  people  is  of  the  most  pernicious 
kind.  Nor  does  the  mischief  terminate  here,  as  I 
apprehend  it  is  equally  destructive  to  the  health ;  but 
we  are  not  here  to  deliberate  and  determine  on  this 
subject  as  moralists,  but  as  politicians,  and  endeavor 
to  draw,  (if  I  may  use  the  expression)  from  the  vices  of 
mankind  that  revenue  which  our  citizens  must,  in  one 
form  or  other,  contribute.  *  *  *  If  we  lay  a  high  duty 
on  Jamaica  rum,  it  is  supposed  it  will  prevent  consump- 
tion, but  then  the  purpose  we  have  in  view  is  frustrated, 
either  because  we  cannot  collect  the  tax  or  because  the 
object  of  it  is  no  longer  imported." 

He  again  adverted  to  the  danger  of  an  evasion  of  the  law 
by  smuggling,  for  which  occupation  our  extensive  and  un- 
guarded coast  offered  alluring  temptation,  as  well  as  tlie  con- 
ditions of  success.  At  the  end  of  this  brief  discussion  it  was 
agreed  to  tax  ardent  spirits,  of  Jamaica  proof,  fifteen  cents ; 
and  all  other  spirituous  liquors,  twelve  cents.* 

So  far  the  discussion  had  not  elicited  any  very  pointed 
Protectionist  argument ;  but  when  Madison,  asserting,  by  way 
of  preface,  that  he  wished  to  protect  our  own  manufacture  as 
much  as  possible,  proposed  to  lay  on  molasses  a  duty  of  eight 


*  The  rates  ultimately  adopted  will  be  given  hereafter. 


CHAPTEB  I.  15 

cents  per  gallon,  the  representatives   of  the  Kew  England 
States  promptly  assumed  the  offensive  in  the  interest  of  their 
constituents,  contending  for  a  low  duty,  on  the  ground  that  the 
contrary  would  involve  the  ruin  of  these  States.     The  except- 
ionally high  duty  proposed  to  be  imposed  on  Jamaica  rum  was 
to  them  a  protective  measure  whose  effectiveness  would  have 
been  seriously  impaired,  if  not  entirely  neutralized,  by  a  high 
duty  on  West  India  molasses.     Massachusetts  then  imported 
annually  between  30,000   and  40,000  hogshead  of  molasses, 
obtained  from  the  West  Indies  in  exchange  for  the  products  of 
the  fisheries.     A  great  quantity  of  this  material  was  manu- 
factured into  rum,  but  no. inconsiderable  portion  of  it  entered, 
in  its  original  state,  into  the  common  diet  of  the  people.     The 
latter  circumstance  gave  the  New  England  members  an  excel- 
lent vantage-ground,  and  furnished  them  the  means  wherewith 
to  cloak  the  real  animus  of  their  opposition,  had  they  elected 
to  do  so,  as  they  did  not.     Their  avowed  object  was  to  protect 
the  rum  distilleries  at  all  hazards.     Thatcher  (Mass.)  was  the 
only  one  who  took  a  broad  view  of  the  temperance  aspect  of 
the  question.     He  said  :  "  I  presume  a  principal  reason  why  a 
high  tax  on  spirits  was  admitted  was  in  order  to  discourage  the 
use  of  it  among  ourselves.     If  this  was  the  intention  of  the 
committee,  I  have  no  objection  to  the  burden ;  but,  even  here, 
I  fear   difficulties  will   arise.     Did   we  judiciously  examine 
whether  the  spirit  of  the  law  accords  with  the  habits  and  man- 
ners of  the  people?  and  did  we  assure  ourselves  of  the  full 
execution  of  the  law  ?  If  we  have  not,  the  act  becomes  impo- 
litic, because  a  law  which  cannot  be  executed  tends  to  make  the 
Government  less  respectable.''     Ames  (Mass.)  stated  his  ob- 
jections in  a  speech  which  deserves  to  be  reproduced  in  the 
abridged  form  given  in  Benton's  work : 

"  The  principles  on  which  this  tax  is  founded,  I  understand  to  be  this: 
that  it  is  an  article  of  luxury,  and  of  pretty  general  consumption,  so  that 
the  duty  is  expected  to  fall  equally  upon  all,  but  that  it  will  not  operate  in 


16  LIQUOR   LAWS   OF   THE   UNITED   STATES. 

this  manner,  I  ttink  is  easily  demonstrable.  Can  a  duty  of  fifty  per  cent. 
ad  valorem,  paid,  as  it  were,  in  an  exclusive  manner,  by  tbe  State  of  Massa- 
chusetts, be  equal  ?  No,  sir.  But,  taking  it  as  a  part  of  the  general  system 
can  it  be  equal  unless  a  proportionable  duty,  equal  to  fifty  per  cent,  is  laid 
upon  articles  consumed  in  other  parts  of  the  Union  ?  No,  sir ;  and  is  it  in 
contemplation  of  gentlemen  to  lay  duties  as  high  as  to  produce  this  equa- 
lity ?  I  trust  it  is  not ;  because  such  duties  could  never  be  collected.  Is  not, 
therefore,  eight  cents  disproportioned  to  the  rates  fixed,  or  intended  to  be 
imposed  on  other  articles  ?  I  think  it  is  ;  and,  if  to  these  considerations  we 
add  what  has  been  said  before,  relative  to  its  being  a  raw  material  impor- 
tant to  a  considerable  manufacture,  we  cannot  hesitate  to  reject  it.  How- 
ever gentlemen  may  think  the  use  of  this  article  (rum)  dangerous  to  the 
health  and  morals  of  our  fellow-citizens,  I  would  also  beg  them  to  con- 
sider, that  it  is  no  more  so  than  any  other  kind  of  spirituous  liquors,  that  it 
will  grow  into  an  article  for  exportation  ;  and  although  I  admit  we  could 
export  it  even  encumbered  with  the  duty  proposed,  yet  by  it  we  run  the 
risk  of  having  the  manufacture  totally  ruined,  for  it  can  hardly  now  stand 
a  competition  at  home  with  West  India  rum,  much  less  can  it  do  so  abroad. 
If  the  manufacturers  of  country  rum  are  to  be  devoted  to  certain  ruin,  to 
mend  the  morals  of  others,  let  them  be  admonished  that  they  prepare  them, 
selves  for  the  event.  If  their  situation  will  not  operate  to  restrain  the  hand 
of  iron  policy,  consider  how  immediately  they  are  connected  with  the  most 
essential  interests  of  the  Union,  and  then  let  us  ask  if  it  is  wise,  to  take 
measures  subversive  of  your  very  existence.  For  I  do  contend  that  the 
very  existence  of  the  Eastern  States  depends  upon  the  navigation  and  fish- 
ery, which  receive  a  deadly  wound  by  an  excessive  impost  on  the  article 
before  us.  I  would  concur  in  any  measure  calculated  to  exterminate  the 
poison  covered  under  the  form  of  ardent  spirits,  from  our  country  ;  but  it 
should  be  without  violence.  I  approve  as  much  as  any  gentleman  the  intro- 
duction of  malt  liquors,  believing  them  not  so  pernicious  as  those  in  common  ^lse. 
But  before  we  restrain  ourselves  to  the  use  of  them,  ice  ought  to  he  certain  that 
we  have  malt  and  hops,  as  well  as  brew-houses  for  their  manufacture." 

A  slight  concession,  subsequently  followed  by  a  consider- 
able reduction  of  the  rate,  was  the  result  of  this  speech.  The 
duty  on  Madeira  wine  and  other  wines  evoked  no  discussion 
throwing  any  additional  light  on  the  subject,  in  either  of  the 
two  principal  aspects  l)efore-mentioned.  A  high  duty  on 
Madeira  was  advocated,  on  the  ground  that  it  was  an  article  of 
luxury  used  exclusively  by  the  rich. 


CHAPTER   I. 


17 


On  the  15tli  of  April,  the  question  being  on  inserting  in 
the  list  of  dutiable  articles  heer,  ale  and  porter,  Fitzsimmons, 
who  had  originally  proposed  such  insertion,  moved  an  alter- 
ation in  these  objects,  by  distinguishing  beer,  ale  and  porter 
imported  in  casks,  from  what  was  imported  in  bottles.  He 
urgently  advocated  the  encouragement  and  protection  of  malt 
liquors  on  moral  grounds.  "  If,"  he  said  "  the  morals  of  the 
people  are  to  be  improved  by  what  enters  into  their  diet,  it 
would  be  prudent  in  the  National  Legislature  to  encourage  the 
manufacture  of  malt  liquors.  The  small  protecting  duties 
laid  in  Pennsylvania  had  a  great  effect  towards  the  establish- 
ment of  breweries  ;  they  no  longer  imported  this  article,  but 
on  the  contrary  exported  considerable  quantities,  and  in  two, 
three  years,  with  further  protection,  would  be  able  to  furnish 
enough  for  the  whole  consumption  of  the  United  States.  He 
moved  that  the  duty  be  fixed  at  9  cents  per  gallon.  Lawrence^ 
whose  strictures  and  criticisms  on  high  duties  had,  from  the 
beginning,  placed  him  in  an  attitude  of  opposition  to  the  wdiole 
measure,  wished  to  have  American  malt  liquors  strongly  pro- 
tected, on  the  ground  that  they  were  preferable  to  the  English 
product,  and  for  the  further  reason  that  this  manufacture  would 
add  to  the  prosperity  of  domestic  agriculture,  as  hops  and  bar- 
ley were  products  of  our  soil.  All  those  members,  who  partici- 
pated in  the  debate,  evinced  the  same  inclination  to  protect 
malt  liquors,  for  moral  and  economic  reasons ;  but  opinions 
differed  as  to  the  expediency  of  the  rate  of  duty  named.  Some 
feared,  that  so  high  a  duty,  practically  operating  as  a  prohibi- 
tion against  foreign  malt  liquors,  would  give  American  brew- 
ers a  monopoly,  and,  by  enhancing  the  price  of  the  beverage, 
increase  the  use  of  ardent  spirits.  To  this  objection  was 
opposed  Sinnickson's  (N.  J.)  argument  that  a  prohibition  of 
foreign  malt  liquors  would  inevitably  increase  the  domestic 
manufacture  of  the  article,  and  as  inevitably  lessen  its  price. 
Madison,  moving  to  lay  a  duty  of  eight  cents  on  malt  liquors. 


18  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

hoped  "  that  this  rate  would  he  such  an  encourageTnent  as  to 
induce  the  manufacture  to  take  deep  root  in  every  State  of  the 
Union."  The  striking  unanimity  of  the  members  of  Congress 
on  the  subject  of  protecting  this  article  precluded  further 
discussion. 

In  subsequent  debates  the  objections  urged  against  high 
rates  became  more  general,  but  preserved  their  original  color- 
ing, although  the  protective  feature  was  no  longer  the  principal 
pivot  of  argument.  The  supposed  difficulties  in  collecting 
high  rates,  and  the  incentive  they  offered  to  evasions  of  the 
law,  were  put  forth  as  valid  reasons  against  their  adoption. 
Great  stress  was  laid  on  the  alternative  of  tolerating  such  eva- 
sions and  suffering  their  consequences  to  the  national  treas- 
sury,  or  of  resorting  to  a  system  of  collection  which  the  people 
would  regard  as  oppressive,  and  hence  resist.  These  objections 
were  met  by  a  countervailing  alternative,  formulated  by 
Sherman,  who  thought  that  to  reduce  the  proposed  rates  would 
frustrate  the  object  of  raising  an  adequate  amount  of  revenue 
for  the  liquidation  of  the  accumulated  national  obligations, 
and  the  maintenance  of  the  Government,  and  in  that  case  it 
would  become  necessary  to  supply  the  deficiency  by  direct  tax- 
ation. This  touched  a  most  vulnerable  point  in  the  legislative 
and  the  popular  mind.  A  deep-rooted  aversion  to  direct  taxes 
seemed,  at  that  time,  absolutely  to  exclude  the  possibility  of 
having  recourse  to  this  method  of  raising  revenue.  When- 
ever, in  the  devious  course  of  the  discussion,  a  casual  allusion, 
however  slight,  was  made  to  any  other  mode  of  taxation  than 
the  one  under  consideration,  it  instantly  became  evident  that 
a  great  majority  of  the  members  were  unwilling  even  to  enter- 
tain any  proposition  tending  in  that  direction.  Yet,  when  the 
motion  to  reduce  the  proposed  duty  on  molasses  was  again 
being  considered,  in  its  bearing  on  domestic  distilleries, 
fisheries  and  navigation,  the  New  England  members  daunt- 
lessly  propounded  the  adoption  of  an  excise  on  domestic  rum. 


CHAPTER    I. 


19 


as  a  revenue-method  holding  out  an  offset  to  the  probable 
deficiency  of  national  income,  consequent  upon  the  wished-for 
lowering  of  the  duty  on  molasses.  Such  was  the  potency 
of  the  local  interests  in  question,  that  their  defenders  felt 
no  hesitancy  in  suggesting  this  highly  unpopular  measure. 
In  one  sense,  their  position  was  entirely  logical  however, 
even  if  they  only  used  it  as  a  blind,  depending  for  its 
rejection  upon  the  very  unpopularity  of  it.  Logical  it  was, 
because  all  that  had  been  said  in  reference  to  distilleries,  from 
a  moral  as  well  as  from  an  economic  point  of  view,  could  not 
apply  to  imported  molasses  in  the  raw  state,  save  on  the 
assumption  that  the  entire  quantity  imported  would  be  trans- 
formed into  rum.  But  inasmuch  as  this  premise  was 
recognizedly  untenable,  it  seemed  but  just  to  claim  an  exemp- 
tion from  the  high  tax  for  that  portion  of  the  imported 
article  consumed  in  its  original  state. 

Yiewed  in  conjunction  wnth  what  was  predicted  as  to  the 
ruinous  effect  of  a  high  tax  on  distilleries,  the  position  seemed 
not  quite  so  well  taken ;  for,  as  Madison  justly  argued,  to 
resort  to  a  low  rate  of  impost  on  molasses,  adding  to  it  an 
excise  on  domestic  rum,  would  lay  an  equally  heavy  burden  on 
the  distilleries — the  only  difi'erence  being,  that  the  tax  would 
be  paid  in  two  forms,  instead  of  one. 

After  Ames  and  Goodhue  had  again  stated  the  close  con- 
nection existing  between  the  molasses  trade  and  the  fisheries, 
Madison,  who  in  this  debate  displayed  all  that  keen  penetration, 
rapid  comprehension  and  felicity  of  utterance  which  easily 
won  for  him  the  leadership  of  the  House,  summed  up  the 
counter-arguments  in  this  forcible  manner.* 

"  He  tliought  an  excise  very  objectionable,  but  as  no  actual  proposition 
for  entering  into  such  a  system  was  before  the  committee,  he  forbore  to  say 
anything  further  about   it.     He   admitted  an  excise  would   obviate   in   part 


*  These  and  all  previous  quotations  are  taken  from  Benton's  "  Abridg- 
ment of  the  debates  of  Congress." 


20  LIQUOK    LAWS    OF    THE    UNITED    STATES. 

some  of  the  difSciilties,  but  Tie  did  not  think  the  answer  pfiven  to  his  argu- 
ment altogether  satisfactory  ;  yet  there  was  another  argument  he  urged  on 
a  former  occasion  remaining  unanswered — it  was,  that  at  this  moment  the 
fisheries,  distilleries,  and  all  their  connections,  were  laboring  under  heavier 
duties  than  what  is  now  proposed  ;  true,  the  duty  is  collected  in  a  different 
mode,  but  affects  the  consumer  in  the  same  manner.  The  gentlemen  have 
said,  to  be  sure,  that  the  duty  is  evaded  ;  but  if  half  is  collected,  it  amounts 
to  more  than  six  cents  per  gallon.  It  is  said  that  a  tax  on  molasses  would 
be  unpopular,  but  not  more  so  than  a  tax  on  salt.  Can  gentlemen  state 
more  serious  apprehensions  in  the  former  than  the  latter  case  ?  Yet  the  com- 
mittee did  not  forego  a  productive  fund,  because  the  article  was  a  necessary 
of  life  and  in  general  consumption.  If  there  is  the  disposition  that  is  repre- 
sented for  people  to  complain  of  oppression  of  Government,  have  not  the 
citizens  of  the  Southern  States  more  j  ust  ground  for  complaint  than  others  ? 
The  system  can  only  be  acceptable  to  them,  because  it  is  essentially  neces- 
sary to  be  adopted  for  the  public  good.  Gentlemen  argue  that  a  tax  on 
molasses  is  unpopular,  and  prove  it  by  experience  under  the  British  Govern- 
ment. If  this  is  to  be  adduced  as  a  proof  of  the  popularity  of  a  measure, 
what  are  we  to  say  with  respect  to  a  tax  on  tea?  Gentlemen  remember, 
no  doubt,  how  odious  this  kind  of  tax  was  thought  to  be  throughout  Ame- 
rica ;  yet  the  House  had,  without  hesitation,  laid  a  considerable  duty  upon 
it.  He  did  not  imagine  that  a  duty  on  either  of  those  articles  was  in  itself 
objectionable;  it  was  the  principle  upon  which  the  tax  was  laid  that  made 
them  unpopular  under  the  British  Government. 

It  is  said  that  this  tax  is  unjust  :  now  he  had  not  a  single  idea  of 
justice,  that  did  not  contradict  the  position.  If  it  be  considered  as  it  relates 
to  rum,  he  was  certain  the  consumers  of  foreign  rum  paid  a  larger  propor- 
tion of  revenue  into  the  Treasury  than  the  consumers  of  country  rum  ;  they 
paid  more  than  equal  distribtitive  justice  required  ;  if  it  was  considered  as  it 
respected  molasses,  there  would  appear  no  injustice.  Molasses  was  consumed 
in  other  States ;  but  if  it  was  not,  sugar  was  used  in  its  stead,  and  subjected  to 
a  duty  as  high  as  that  on  molasses.  But  dismissing  both  these  considerations^ 
and  even  admitting  the  whole  weight  to  fall  ou  the  Northern  States,  it  would 
not  be  disproportioned,  because,  in  the  long  list  of  enumerated  articles 
subject  to  a  high  duty,  they  import  few  or  none  ;  indeed  the  articles  were 
pretty  generally  taxed  for  the  benefit  of  the  manufacturing  part  of  the 
uortbern  community;  see  loaf  sugar,  candles,  cheese,  soap,  &c.  He  hoped 
gentlemen  would  not  infer  from  this  observation,  that  he  thought  the  en- 
couragement  held  out  by  the  bill  to  manufacturers  improper  ;  far  from  it ; 
he  was  glad  to  see  their  growing  consequences,  and  was  disposed  to  give 
them  every  aid  in  his  power.  From  this  view  of  the  subject,  he  was  inclined 
to  adhere  to  the  bill,  and  not  make  any  reduction." 


CHAPTEK   I.  21 

The  discussion,  so  far  as  it  throws  any  light  ou  the  features 
of  the   subject  under   consideration,  practically    ceased   with 
Madison's  speech.     After  various  amendments  had  been  made, 
and  clauses  added — among  the  latter,  one  limiting  the  opera- 
tions of  the  law  to  the  1st  day  of  June,  1796 — the  bill  was 
sent  to  the  Senate,  and  there  read  a  first  time  on  May  18th, 
passing  to  a  second  reading  on  the  21st,  and  a  third  reading  on 
the  11th  of  June.     On  June  12th,  the  bill  was  returned  to  the 
House  with  various  amendments.     For  obvious  reasons,  the 
literal  text  of  the  debates  in  the  Senate  cannot  be  given ;  their 
tenor,  however,  may  readily  be  deduced  from  the  character  of 
the  amendments.     The  latter  were  principally  based  upon  the 
grounds   maintained  by  the  minority  of    the  House.      The 
refusal  of  the  House  to  concur  in  the  amendments  proposed 
by  the  Senate,  was  met  by  the  declaration  of  the  latter  body, 
'  that   the  amendments  would   not  be   receded  from.      Both 
branches  of  Congress  insisting,  with  equal  tenacity,  on  carrying 
their  points,  the  appointment  of  a  committee  of  conference 
was  finally  agreed  upon  ;  and  this  committee  reported,  on  the 
27th  of  June,  that  the  conference  resulted  in  the  adoption  of 
the  bill  as  amended  by  the  Senate,  with  some  additional  alter- 
ations  affecting,    among   other   things,  the   rate   of  duty   on 
spirituous  and  malt  liquors.     The  President  approved  the  bill 
on  July  dth.     The  rates  of  duty  imposed  by  virtue  of  it  upon 
the  articles  of  the  liquor  traflic  were  as  follows : 

Specifio  Rates: 

Ale,  beer  and  porter,  5  cents  per  gallon  ;  and  20  cents  per 
dozen  bottles.     Cider,  20  cents  per  dozen  bottles. 

Malt,  ten  cents  per  bushel.  Molasses,  two  and  one-half 
cents  per  gallon.  Spirits,  Jamaica,  ten  cents  per  gallon,  and 
all  others  eight  cents.  Madeira  wine,  eighteen  cents  per  gal- 
lon, and  other  wines,  ten  cents  per  gallon. 


22  LIQUOR   LAWS    OF   THE   UNITED    STATES. 

The  following  is  the  title,  and  the  full  text  of  the  first 
section,  of  the  law. 

AN  ACT  FOK  LAYING  A  DUTY  ON  GOODS,  WARES,  AND  MERCHANDISES 
IMPOETED  INTO  THE  UNITED  STATES. 

Section  I.  Whereas  it  is  necessary  for  the  support  of  government, 
for  the  discharge  of  the  debts  of  the  United  States,  and  the  encouragement 
and  protection  of  onanufactures,  that  duties  be  laid  on  goods,  wares  and 
merchandise  imported  : 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the 
United  States  of  America  in  Congress  assembled,  That  from  and  after  the  first 
day  of  August  next  ensuing,  the  several  duiies  hereinafter  mentioned  shall 
be  laid  on  the  following  goods,  wares  and  merchandise  imported  into  the 
United  States  from  any  foreign  port  or  place,  that  is  to  say  :  on  all  distilled 
spirits  of  Jamaica  proof,  imported  from  any  kingdom  or  country  whatso- 
ever, per  gallon,  ten  cents;  on  all  other  distilled  spirits,  per  gallon,  eight 
cents  ;  on  molasses,  per  gallon,  two  and  a  half  cents  ;  on  Madeira  wine,  per 
gallon,  eighteen  cents  ;  on  all  other  wines,  per  gallon,  ten  cents  ;  on  every 
gallon  of  beer,  ale  or  porter  in  casks,  five  cents  ;  on  all  cider,  beer,  ale  or 
porter  in  bottles,  per  dozen,  twenty  cents  ;  on  malt,  per  bushel,  ten  cents  ; 
on  brown  sugars,  per  pound,  one  cent;  on  loaf  sugars,  per  pound,  three 
cents ;  on  all  other  sugars,  per  pound,  one  and  a  half  cents ;  on  coffee,  per 
pound,  two  and  a  half  cents  ;  on  cocoa,  per  pound,  one  cent  ;  on  all  candles 
of  tallow,  per  pound,  two  cents ;  on  all  candles  of  wax  or  spermaceti,  per 
pound,  six  cents;  on  cheese,  per  pound,  four  cents;  on  soap,  per  pound,  two 
cents  ;  on  boots,  per  pair,  fifty  cents  ;  on  all  shoes,  slippers  or  goloshes  made 
of  leather,  per  pair,  seven  cents  ;  on  all  shoes  or  slippers  made  of  silk  or 
stuff,  per  pair  ten  cents ;  on  cables,  for  every  one  hundred  and  twelve  pounds, 
seventy-five  cents  :  on  tarred  cordage,  for  every  one  hundred  and  twelve 
pounds,  seventy-five  cents  ;  on  untarred  cordage  and  yarn,  for  every  one 
hundred  and  twelve  pounds,  ninety  cents  ;  on  twine  or  pack  thread,  for  every 
ODe  hundred  and  twelve  pounds,  two  hundred  cents  ;  on  all  steel  un wrought, 
for  every  one  hundred  and  twelve  pounds,  fifty-six  cents  ;  on  all  nails  and 
spikes,  per  pound,  one  cent ;  on  salt,  per  bushel,  six  cents  ;  on  manufactured 
tobacco,  per  pound,  six  cents  ;  on  snuff,  per  pound,  ten  cents  ;  on  indigo,  per 
pound,  sixteen  cents ;  on  coal,  per  bushel,  two  cents ;  on  pickled  fish,  per 
barrel,  seventy-five  cents ;  on  dried  fish,  per  quintal,  fifty  cents.  On  all  teas 
imported  from  China  or  India,  in  ships  built  in  the  United  States,  and  belong- 
ing to  citizens  thereof,  or  in  ships  or  vessels  built  in  foreign  countries,  and  on 
the  sixteenth  of  May  last,  wholly  the  property  of  citizens  of  the  United  States 
and  so  continuing  until  the  time  of  importation  as  follows  :  on  bohea  tea, 

;4 


CHAPTER    I.  23 

per  pound,  sir  cents ;  on  all  souchong,  or  other  black  tea,  per  pound,  ten 
cents  ;  on  all  hyson  teas,  per  pound,  twenty  cents  ;  on  all  other  green  teas, 
per  pound,  twelve  cents.  On  all  teas  imported  from  Europe  in  ships  or  ves- 
sels built  in  the  United  States,  and  belonging  wholly  to  a  citizen  or  citizens 
thereof,  or  in  ships  or  vessels  built  in  foreign  countries,  and  on  the  sixteenth 
of  May  last,  wholly  the  property  of  citizens  of  the  United  States  and 
so  continuintr  until  the  time  of  importation,  as  follows :  on  bohea  tea, 
per  pound,  eight  cents  ;  on  all  souchong,  and  other  black  teas,  per  pound, 
thirteen  cents;  on  all  hyson  teas,  per  pound,  twenty  six  cents;  on  all  other 
green  teas,  per  pound,  sixteen  cents.  On  all  teas  imported,  in  any  other 
manner  as  above  mentioned,  as  follows  :  on  bohea  tea,  per  pound,  fifteen 
cents,  on  all  souchong,  or  other  black  teas  per  pound,  twenty-two  cents; 
on  all  hyson  teas,  per  pound,  forty  cents,  on  all  other  green  teas,  per 
pound,  twenty-seven  cents.  On  all  goods,  vfares  and  merchandises,  other 
than  teas,  imported  from  China  or  India,  in  ship  not  built  in  the  United 
States,  and  not  wholly  the  property  of  citizens  thereof,  nor  in  vessels  built  in 
foreign  countries,  and  on  the  sixteenth  of  May  last  wholly  the  property  of  a 
citizen  or  citizens  of  the  United  States,  and  so  continuing  until  the  time  of 
importation,  twelve  and  a  half  per  centum  ad  valorem. 

TEN    PER   CENTUM   AD   VALOREM. 
On  all  looking-glasses,  windows  and  other  glass  (except  black  quart 
bottles) ;  on  all  china,  stone  and  earthen  ware ;  on  gun  powder ;  on  all  paints 
ground  in  oil ;  on  shoe  and  knee  buckles  ;  on  gold  and  silver  lace  ;  and  on 
gold  and  silver  sheaf. 

SEVEN  AND  A  HALF  PER  CENTUM  AD  VALOREM. 

On  all  blank  books ;  on  all  writing,  printing  or  wrapper  paper,  paper 
hangings  and  pasteboard  ;  on  cabinet  wares  ;  on  buttons ;  on  all  saddles  ; 
on  all  gloves  of  leather ;  on  all  hats  of  beaver,  fur  wool,  or  mixture  of  either  ; 
on  all  millinery  ready  made  ;  on  all  castings  of  iron,  and  upon  slit  and  rolled 
iron ;  on  all  leather  tanned  or  tawed,  and  all  manufactures  of  leather,  except 
such  as  sball  otherwise  be  rated ;  on  canes,  walking  sticks  and  whips  ;  on 
clothing  ready  made  ;  on  all  brushes ;  on  gold,  silver,  and  plated  vrare,  and 
on  jewelry  and  paste  work  ;  on  anchorc*,  and  on  all  wrought,  tin  and  pewter 
ware. 

On  playing  cards,  per  pack,  ten  cents.  On  every  coach,  chariot  or 
other  lour  wheel  carriage,  and  on  every  chaise,  solo,  or  other  two  wheel 
carriage,  or  parts  thereof,  fifteen  per  cent,  ad  valorem.  On  all  other  goods, 
wares  and  merchandise,  five  per  cent  on  the  value  thereof  at  the  time  and 
place  of  importation,  except  as  follows  :  saltpetre,  tin  in  pigs,  tin  plates,  lead, 
old  pewter,  brass,  iron  and  brass  wire,  copper  in  plates,  wool,  cotton,  dyeing 


24  LIQUOR   LAWS    OF   THE    TIISnTED    STATES. 

woods  and  dyeing  drugs,  raw  hides,  beaver  and  all  other  furs,  and  deer 
Bkins. 

The  question  of  temperance,  which  formed  a  strong  under- 
current throughout  the  discussion  on  the  subject  of  laying  high 
duties  on  spirituous  and  malt  liquors,  was  presented  in  various 
aspects,  according  to  the  conjunction  in  which  it  stood  to  the 
principal  issue.  When  arrayed  against  local  interests,  as  in  the 
case  of  the  New  England  States,  it  was  promptly  relegated,  by 
those  immediately  affected,  to  the  domain  of  moral  philosophy 
and  ethical  speculation,  as  an  uncommonly  good  thing  in  itself, 
highly  desirable  wherever  attainable,  without  detriment  to 
material  interests ;  but  scarcely  worthy  of  serious  considera- 
tion, where  the  raising  of  revenue  and  the  protection  of  exist- 
ing industries  dictated  a  contrary  course.  But  even  in  these 
cases  there  was  rare  unanimity  of  opinion  as  to  one  of  the  reme- 
dies, propositionally  and  positively  recommended,  and  ulti- 
mately adopted.  The  true  status  of  the  question  needs  some 
elucidation. 

The  historian  Hildreth,  in  reviewing  the  foregoing  debates, 
says : 

The  great  evils  attending  the  free  use  of  ardent  spirits  had 
already  attracted  public  attention.  A  tract  on  this 
subject  by  Dr.  Kush  had  lately  been  republished  in 
almost  all  American  papers,  and  had  made  a  strong  im- 
pression on  the  public  mind.  At  the  federal  festival  at 
Philadelphia  (held  on  July  4,  1788,  celebrating  the 
ratification  of  the  new  Constitution  by  ten  States,) 
ardent  spirits  had  been  excluded,  American  beer  and 
cider  being  the  only  liquors  used."  * 

This  laconic  reference  clearly  points  out  both  the  evil  and 
the  remedy,  as  understood  by  all  those  members  of  Congress, 
whose  speeches  are  herein  quoted  ;  but  a  closer  examination 

*  "  The  History  of  the  United  States  of  America,"  Vol.  IV.,.  page  69. 


CHAPTER   I.  25 

will  be  necessary  to  a  full  understanding  of  the  question. — The 
consumption  of  ardent  spirits  had  assumed  almost  incredible 
proportions ;  the  use  of  whiskey  and  rum  had  become  so  com- 
mon that  these  articles  were  almost  universally  regarded  as 
necessaries  of  life.  According  to  an  estimate,  the  correctness 
of  which  the  reader  will  have  an  opportunity  of  testing  hereafter, 
the  per  capita  consumption  at  that  time  appears  to  have  been 
between  twelve  and  thirteen  quarts,  annually.  Tlie  actual 
consumptiou  eludes  computation ;  but  this  estimate,  it  is  justi- 
fiably assumed,  falls  below,  ratlier  than  above  the  true  figure. 
Almost  every  farmer,  in  some  States,  manufactured  his  own 
whiskey,  not  only  from  the  surplus  of  his  cereal  produce  over 
and  above  the  marketable  portion,  but  frequently  from  all 
that  part  for  which,  either  in  the  raw  state,  or  manufactured 
into  flour,  a  ready  market  could  have  been  found,  jind  this  is 
not  inexplicable  when  it  is  considered  that  ardent  spirits  had 
in  some  States  become  a  measure  of  value,  in  lieu  of  currency, 
being  accepted,  for  example,  without  reluctance,  as  remunera- 
tion for  agricultural  labor.  Indeed,  distillation  had  become  an 
almost  indispensable  adjunct  of  agriculture  in  grain-growing 
localities;  the  condition  of  things  growing  out  of  this  combi- 
nation resembling  strikingly  the  situation  which  was  produced 
in  Sweden,  at  about  the  same  time  (1787),  when  every  family 
was  given  the  right  to  distill  liquors  for  home  consumption.^ 
Distillation  afforded  many  pecuniary  advantages.  Coxe  states, 
that  from  a  bushel  of  rye  two  gallons  of  spirits  could  be 
extracted  and  brought  to  market,  where  it  realized  for  the  farmer 
two-thirds  of  a  dollar  at  less  expense  than  if  the  same  quantity 
of  grain  had  been  manufactured  into  flour  and  carted  to  the 
same  place  for  sale.f  The  fisheries  and  navigation  of  the  New 


*  See  "  Real  and  Imaginary  Effects  of  Intemperance,"  by  G.  Thomann, 
New  York,  1884 ;  page  93. 

f  "  View  of  the  United  States  ;  "  page  124. 


26  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

England  States  were — as  has  been  learned  from  tlie  debates  in 
Congress — but  the  superstructure  erected  npon  the  basis  of 
molasses  ;  and,  whatever  Ames  and  his  colleagues  may  have 
said  of  the  consumption  of  this  article  in  the  raw  state,  it  is 
not  difficult  to  understand  that  advantages,  similar  to  those 
favoring  distillation  in  grain-growing  localities,  also  operated 
to  increase  the  manufacture  of  ardent  spirits  in  the  JSTew 
England  States. — In  Pennsylvania  the  consumption  of  whiskey 
must  have  been  prodigious,  there  having  been,  in  1790,  no  less 
than  five  thousand  stills  in  operation.  The  census  of  1790 
places  this  State's  entire  population  at  4-34,373 ;  at  a  rough 
estimate,  then,  there  was  one  still  for  every  eighty-six  of  the 
inhabitants,  man  woman  and  child.  Excesses,  of  which  the 
present  generation,  trained  to  comparative  sobriety,  have  no 
adequate  conception,  naturally  followed  such  drinking  habits 
and  tended  to  arouse  the  darkest  apprehensions  in  the  minds  of 
the  more  enlightened  citizens  of  Pennsylvania,  particularly 
of  the  city  of  Philadelphia — then  the  centre  of  humane  thought 
and  philanthropic  aspirations.  A  rational  temperance  move- 
ment aiming,  not  at  the  destruction  of  the  distilleries  and  the 
total  abandonment  of  spirituous  liquors,  but  at  a  refinement  of 
drinking  habits,  was  inaugurated  long  before  the  assembling 
of  tlie  first  Congress,  and  its  advocates  and  promoters  had,  at 
the  period  now  under  consideration,  already  acquired,  by  study, 
observation  and  experience,  a  very  clear  conception  of  the 
means  necessary  to  the  consummation  of  their  object.  The 
nature  of  this  means  cropped  out  at  every  stage  of  the  Con- 
gressional debate  on  the  subject  of  imposts,  and  the  unanimity 
with  which  it  was  approved  and  adopted  by  members  of  Con- 
gress, shows  that  the  public  mind  had  been  thoroughly  imbued 
with  a  sense  of  its  importance  and  effectiveness.  This  was,  it 
need  scarcely  be  said  after  all  the  quotations  on  the  subject,  the 
effort  to  create  and  cultivate  a  taste  for  malt  liquors,  and  to 
substitute  these,  so  far  the  climate  of  the  various  localities,  the 


CHAPTER    I.  "• 


mode  of  life  and  occupation  of  the  people  would  permit,  for 

ardent  spirits. 

Dr.  Benjamin  Rush,  physician,  moralist,  philosopher, 
essayist,  politician  and  orator;  at  one  time  professor  of  medi- 
cine and  clinical  practice  at  the  University  of  Pennsylvania; 
a  savant  whose  writings  are  even  to  this  day  quoted  by  tem- 
perance advocates,  believed,  as  did  the  majority  of  his  cultured 
contemporaries,  that  the  true  solution  of  the  question  lay  m 
encouraging  the  brewing  industry.  In  his  essays  on  the  effects 
of  the  excessive  use  of  alcohol  on  the  human  body,  this  idea 
stands  out  in  bold  relief;  but  it  is  also  easily  traceable  in  all 
those  didactic  writings,  by  which  he  strove  to  mould  popular 
thought  in  matters  relating  to  individual  happiness  and  general 
prosperity,  as,  for  example,  in  his  "  Account  of  the  manners  of 
the  German  inhabitants  of  Pennsylvania."  This  valuable 
paper  is  prefaced  with  the  following  words : 

"  The  State  of  Pennsylvania  is  so  much  indebted  for  her 
prosperity  and  reputation  to  the  German  part  of  her 
citizens  that  a  short  account  of  their  manners  may,  per- 
haps, be  useful  and  agreeable  to  their  fellow-citizens  in 
every  part  of  the  United  States." 

Dwelling  briefly  on  the  origin  of  German  immigration,  he 
proceeds  to  a  description  of  those  characteristics  in  which  the 
German  farmers  differed  from  most  other  farmers  of  Pennsyl- 
vania. He  praises  their  frugality  and  economy,  their  habits 
and  love  of  labor ;  holds  up  for  emulation  the  almost  tender 
care  they  take  of  their  horses  and  cattle ;  describes  minutely 
the  splendid  condition  in  which  they  maintain  their  farms,  gar- 
dens and  buildings ;  the  economy  they  practice  in  the  disposi- 
tion of  their  products ;  their  methodical  cultivation  of  the  soil ; 
the  division  of  labor  on  their  farms;  the  charming  concord 
prevailing  in  their  families ;  their  aptitude  for  music ;  their 
piety  and  rectitude  ;  their  love  of  civic  liberty,  and  the  pride 


28  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

they  take  in  the  propagation  of  their  kind.*  And,  as  if  to  furnish 
a  key  to  all  these  traits,  he  states,  in  describing  these  peoples' 
diet :  "  Yeiy  few  of  them  ever  use  distilled  spirits  in  their 
families,  their  common  drink  being  leer^  wine  and  ciderP 
Dr.  Rush  closed  his  essay  with  an  eloquent  apostrophe  to  the 
citizens  of  the  Union,  the  legislators  of  Pennsylvania  and  the 
law-makers  of  the  United  States,  to  the  latter  of  whom  he 
addressed  the  following  words : 

"  Legislators  of  the  United  States,  learn  from  the  wealth 
and  independence  of  the  German  inhabitants  of  Penn- 
sylvania to  encourage,  by  your  examples  and  laws, 
the  republican  virtues  of  frugality  and  economy.  They 
are  the  only  pillars  which  can  support  the  present  Con- 
stitution of  the  United  States." 

Contrasting  Rush's  description  of  the  manners  of  these 
people  with  what  was  said  in  reference  to  the  general  drink- 
ing habits  and  their  results,  it  is  not  difficult  to  comprehend 
the  objective  point  of  the  essay  quoted. 

The  moral  and  economic  aspect  of  this  temperance  movement 
becomes  still  more  manifest  in  the  writings  of  Tench  Coxe.  His 
views  on  the  expediency  of  creating  and  fostering  breweries 
coincided  with  the  opinions  of  a  great  majority  of  the  members 
of  the  first  Congress  : 

"  The  encouragement  to  agriculture,"  he  says,  in  his  essay 
before  quoted,  "  afforded  by  seme  manufactories,  is  a 
reason  of  solid  weight  in  favor  of  carrying  them  on  with 
industry  and  spirit.  Malt  liquors,  if  generally  used, 
linseed  oil,  starch  (and,  were  they  not  a  poison  to  our 
morals  and  constitution,  we  might  add  grain  spirits,) 


*  Had  a  German  written  sucli  an  essay,  he  would  be  liable  to  the  impu- 
tation of  an  excess  of  national  pride,  and  the  author  of  this  book,  himself  a 
German,  would  scarcely  have  found  the  courage  to  quote  him. 


CHAPTER    I.  29 

would  require  more  grain  to  make  tliem,  than  has  been 
exported  in  any  year  since  the  revolution.  We  cannot 
omit  to  observe  here,  that  beer  strengthens  the  arm  of 
the  laborer  without  debauching  him,  while  the  noxious 
drink  now  used  enervates  and  corrupts  him." 

He  styles  beer  "  the  best  of  our  commodities,"  and  urges 
upon  farmers  the  advantages  held  out  to  them  by  the  cultiva- 
tion of  hops  and  barley ;  but,  though  he  consistently  keeps  in 
the  foreground  the  economic  interrelation  between  agriculture 
and  the  various  manufactures  mentioned,  basing  thereon  his 
advocacy  of  moderately  protective  measures,  he  emphasizes 
again  and  again,  with  unusual  ardor  and  force,  the  advisability 
of  generally  introducing  malt  liquors,  upon  purely  moral 
grounds. 

This  leading  idea  of  temperance  advocates  had  already 
borne  appreciable  fruit,  when  Congress  devoted  some  attention 
to  the  matter.  The  local  authorities  had  in  some  cases  acted 
upon  it,  with  wisdom  and  judicious  discrimination,  and  to 
their  action  and  the  refining  influence  of  increasing  intellec- 
tual activity  must  be  attributed  the  flourishing  condition  of 
the  brewing  industry  of  Pennsylvania,  as  before  described  in 
the  words  of  one  of  the  Congressional  representatives  of  this 
State.  So  evident,  indeed,  were  the  results  of  a  rational 
exercise  of  moral  suasion  and  judicious  laws — unaided  by  any- 
thing resembling,  in  the  remotest,  an  intermeddling  with 
private  rights,  that  Coxe  found  in  the  actual  state  of  things 
sufficient  warrant  for  the  statement,  that 

"  it  may  be  considered  a  fact  strongly  in  favor  of  the  in- 
dustry, sobriety  and  tranquility  of  the  city  of  Phila- 
delphia that  its  breweries  exceed,  in  the  quantity  of 
their  manufactured  liquors,  those  of  all  the  sea-ports  of 
the  United  States." 


30  LIQUOR   LAWS   OF   THE   UNITED    STATES. 

And  again : 

"  The  superior  virtue,  both  moral  and  political,  of  a  country 
which  consumes  malt  liquors  instead  of  distilled  spirits, 
needs  only  to  be  mentioned." 

It  has  been  observed  that  in  addition  to  economic  consid- 
erations, and  those  of  a  moral  nature,  there  is  plainly  discernible 
in  the  Congressional  debates  and  other  public  utterances,  what 
one  might  be  tempted  to  regard  as  a  patriotic  motive,  tending 
to  a  preference  of  American  malt  liquors  over  English  beer, 
ale  and  porter.  In  reality  this  motive  partakes  more  of  a 
sanitary,  than  a  patriotic  character. 

The  fiscal  policy,  which  unfortunately  transformed  the 
drinking  habits  of  the  English  people,  had  reached  its  climax 
at  the  very  period  when  the  necessity  for  a  contrary  course 
became  manifest  in  the  United  States ;  in  fact,  the  decline  of 
the  English  taste  for  malt  liquors  is  coeval  with  its  comparatively 
vigorous  rise  and  development  here.  From  1760  to  1803  malt 
and  hops  were  so  heavily  taxed  in  England,  that  they  naturally 
ceased  to  form  the  essential  ingredients  of  the  beverage  then 
offered  for  sale,  under  the  alluring  name  of  malt  liquors  ;  and 
the  adulterations  of  the  article,  overstepping  the  limits  of  the 
average  human  stomach's  forbearance,  drove  people  from  the 
use  of  that  drink.  As  a  consequence,  great  dissatisfaction  pre- 
vailed throughout  the  three  kingdoms.  The  Enghsh  brewers 
were  made  the  butt  of  much  abuse  and  sarcasm.* 


*  "The  tax  on  beer,  early  in  the  reign  (George  III.)  had  greatly  exas- 
perated  the  mob.  The  Royal  Magazine  tells  that  while  their  Majesties  were 
at  Drury  Lane  Theatre,  to  see  the  Winter's  Tale,  as  Qarrick  was  repeating 

the  lines : 

•  For  you,  my  hearts  of  oak,  for  your  regale, 
Here's  good  old  English  stingo,  mild  and  stale,' 

a  fellow  cried  out  of  the  gallery :  '  At  threepence  a  pot.  Master  Garrick,  or 
confusion  to  the  brewers ! ' 

Imposts  on  malt  were  continually  brought  forward.     The  brewers  as 


CHAPTER   I.  ^1 


Strange  it  would  have  been,  indeed,  had  this  state  of  things 
escaped  the  observation  of  American  patrons  of  English  malt 
liquors,  or  failed  to  bring  about,  in  some  degree,  a  revulsion 
of  the  prejudice  in  favor  of  that  article.  Naturally,  American 
beer  was*  given  the  preference,  and  deservedly,  too,  as  the 
article  manufactured  here  possessed  all  the  qualities  of  good 
and  pure  English  ales  of  the  old  standard,  and  none  of  the 
abominable  qualities  of  the  later  decoctions.  The  best  proof 
of  this  is  in  the  fact,  that,  as  early  as  1790,  Calcutta  mer- 
chants—as James  Mease  tells  us  in  his  "  Picture  of  Phila- 
delphia," published  in  1810— having  tasted  American  porter, 
and  found  it  to  be  a  wholesome,  pure  drink,  able  to  bear  the 
climate,  ordered  large  quantities  of  it,  in  preference  to  the 
stuff  they  had  been  accustomed  to  import  from  England. 

With  these  facts  before  him,  the  reader  can  not  find  it 
difficult  either  to  draw  his  own,  or  fully  understand  our,  con- 
clusions as  to  the  spirit  of  the  first  revenue  law,  in  its  bearing 
on  the  liquor  traffic. 

Specific  duties  upon  spirituous  liquors  were  adopted,  first, 
because  their  general  consumption  offered  a  strong  guarantee 
for  their  becoming  a  lucrative  source  of  revenue  ;  and,  secondly, 
because,  for  moral  reasons,  popular  sentiment  seemed  to  exact 
them.  But  the  force  of  either  of  these  reasons,  logically  con- 
sidered, must  more  or  less  attenuate  that  of  the  other,  because 
they  are  based  on  opposite  assumptions.     The  efficacy  of  the 

well  as  their  clients  were  wild.  Mr.  Whitbread  inveighed  on  one  occasion 
against  the  Ministry  for  laying  a  war  tax  upon  malt.  Sheridan,  who  was 
present,  extemporized  the  following  lines  : 

'  They've  raised  the  price  of  table  drink  ; 
What  is  the  reason,  do  you  think  ? 
The  tax  on  malt 's  the  cause,  I  hear — 
But  what  has  malt  lo  do  with  beer?" 
{Nineteen  Centtt.-y.H  of  Drink  in  England  by  V.  FrenchX 


32  LIQrOK    LAWS    OF   THE    UNITED    STATES. 

duties  in  the  one  case,  must  necessarily  be  proportionate  to 
their  insufficiency  in  the  other.  The  economist  calculated 
upon  a  large  consumption  ;  the  moralist,  on  the  contrary,  on  a 
discouragement  of  the  use  of  ardent  spirits.  Both  masters 
could  not  be  served  in  an  equally  efficient  manner ;  for  what- 
ever was  to  be  a  gain  to  the  treasury  must  inevitably  be  a  loss 
to  morality.  But  even  this  is  not  yet  an  entirely  correct  state- 
ment of  the  case ;  for,  under  the  system  adopted,  it  might 
occur — and  did — that  neither  the  fiscal  nor  the  moral  objects 
would  be  attained.  Comparatively  high  duties  might  operate 
as  a  check  on  the  importation  of  liquors,  and  tliat  would  be  a 
loss  to  the  treasury ; — yet  morality  need  not  necessarily  gain 
anything  by  it,  since  the  check  on  the  importation  must  un- 
avoidably act  as  a  correspondingly  effective  impetus  to  domestic 
manufacture.  The  contemplation  of  the  latter  contingency 
must  naturally  have  suggested  to  the  minds  of  the  law-makers 
the  necessity  of  resorting,  in  the  near  future,  to  an  excise  on 
distilled  spirits;  and  the  countervailing  benefits  to  agriculture, 
anticipated  in  that  case,  may  have  silenced  other  remon- 
strances. 

Protection,  though  strongly  recommended  as  a  helpmate  to 
agriculture,  was  held  subordinate  to  fiscal  and  moral  considera- 
tions, save  in  the  case  of  the  distilleries  of  the  New  England 
States.  The  representatives  of  these  States,  while  acknow- 
ledging the  force  of  the  ethical  arguments,  and  admitting,  as 
Ames  did  repeatedly,  that  a  partial  substitution  of  malt  liquors 
would  bring  about  a  much-desired  change  of  the  general  drink- 
ing habits  and  their  results,  insisted,  very  properly,  that  the 
moral  aspect  of  their  case  should  not  prevail  against  its 
material  requirements,  when  it  was  known  beforehand  that  a 
contrary  course  would  involve  the  welfare  of  a  large  part  of 
the  population.  Here,  the  idea  of  protecting  the  domestic 
product  overbalanced  all  other  considerations. 

On  general  principles,  then,  the  members  of  the  first  Con- 


CHAPTER    I.  33 

gress  admitted  the  desirability  of  diminishing  the  use  of  ardent 
spirits,  but  seeing  the  impossibility  of  realizing  this  desidera- 
tum, by  the  legislative  enactments  ])roposed,  they  agreed  to 
draw  from  the  vicious  indulgence  of  a  human  craving  the 
greatest  attainable  pecuniary  and  economic  advantage. 

An  impost  was  placed  on  malt  liquors  for  the  express  and 
sole  purpose,  and  with  the  distinctly  avowed  intention,  of  en- 
couraging and  protecting  domestic  breweries,  partly  on  account 
of  the  advantages  offered  by  this  manufacture  to  agriculture, 
but  primarily  and  principally  because  it  was  universally  con- 
ceived to  be  a  moral  corrective  of  great  force ;  the  only  means 
by  which  the  desideratum  before-mentioned  could  be  realized. 
Breweries  were,  by  legal  measures,  to  he  forced  into  existence, 
encouraged,  fostered  and  nurtured,  so  that  their  product,  by 
its  abundance,  cheapness  and  quality,  could  become  the  com- 
mon drink  of  the  people.— This  was  the  intention  of  that 
generation  of  law-makers,  whom  we  of  the  present  day  look 
up  to  with  reverence  and  grateful  admiration,  as  to  the  founders 
of  our  civic  happiness  and  material  prosperity.  And  it  is 
well  to  keep  in  view  this  indisputable  historical  fact,  as,  in  the 
light  of  subsequent  events  and  the  present  state  of  things,  it 
serves  as  a  gauge  of  the  far-seeing  wisdom,  sound  judgment 
and  keen  penetration  of  those  legislators;  and  shows,  by  con- 
trast, the  perniciousness  of  measures  advocated  in  our  day — 
measures  which,  wherever  adopted,  have  completely  withered 
the  inestimable  fruits  of  temperance  matured  under  the  opera- 
tion of  wise  laws. 


CHAPTER  II. 

product  of  the  import  duties  under  the  precedlng  act. 
additional  revenue  necessary.  hamilton's  proposi- 
tions, increase  of  specific  duties,  and  introduction 
of  internal  taxes  on  distilled  spirits  recommended. 
Hamilton's  views  on  the  desirability  of  encouraging 

THE   manufacture   OF  MALT  LIQUORS,  FOR   MORAL   REASONS. 

the  work  of  the  second  session  of  congress,  rejection 
OF  excise  system,  enactment  of  laws  increasing  im- 
port duties,  and  regulating  collection  thereof. 
Hamilton's  revenue  propositions  again  discussed  in 
next  session  of  congress,  opposition  to  excise  system 
by  southern  members,  grounds  of  opposition,  enact- 
ment OF  law  imposing  additional  duties  on  imported, 
and  excise  duties    on  domestic  spirits,     conclusion  as 

TO   THE    spirit   OF    THESE    LAWS. 

The  act  layinor  duties  on  imported  goods,  wares  and  mer- 
chandise was  almost  immediately  followed  by  an  act  to 
regulate  the  collection  of  duties  (approved  July  30,  1789j, 
establishing  collection  districts ;  designating  ports  of  entry 
and  delivery,  and  prescribing  the  mode  of  collection.  In  all 
fifty-nine  collection  districts  were  established,  of  which  IS^ew 
Hampshire,  Pennsylvania  and  Delaware  formed  one  each, 
while  in  Massachusetts  there  were  twenty  districts ;  in  Con- 
necticut, three ;  in  !N^ew  York,  two  ;  in  New  Jersey,  three  ;  in 
Maryland,  nine  ;  in  Virginia,  twelve  ;  in  South  Carolina,  three, 
and  in  Georgia,  four.  North  Carolina  and  Rhode  Island,  not 
having  ratified  the  Constitution,  were  necessarily  excluded  for 
a  time  from  the  operation  of  this  law,  and,  in  some  respects, 


CHAPTER   II.  ^«^ 


Stood  to  the  United  States  in  the  same  relation  as  any  foreign 
country.  Thns,  for  example,  an  act,  approved  September 
16th,  1789,  provides  that  "  all  rum,  loaf  sugar,  and  chocolate 
manufactured  or  made  in  the  States  of  North  Carolina,  or 
Khode  Island  and  Providence  Plantation,  and  imported  into 
the  United  States,  shall  be  subject  to  the  like  duties,  as  goods 
of  the  like  kinds,  imported  from  any  state,  kingdom  or  coun- 
try, are  made  subject  to."  * 

The  custom  houses  in  the  several  States  were  not  organ- 
ized till  at  different  periods,  from  the  fifth  of  August  to 
sometime  in  September,  f  and  even  then  the  machinery  of 
collection  could  not  be  said  to  be  in  perfect  working  order. 
Hence  the  result  of  the  operation  of  the  law  during  the 
remainder  of  the  year  cannot  be  depended  upon  as  a  safe  cri- 
terion of  the  pecuniary  productiveness  of  the  duties.  Under 
date  of  March  4th,  1790,  the  Secretary  of  the  Treasury 
reported  that  the  net  revenue  from  imposts  and  tonnage,  from 
the  11th  of  August  to  the  31st  of  December,  1789,  amounted 
to  $788,797.40.  A  large  part  of  this  sum  was  derived  from 
the  duties  on  malt  licpiors  and  distilled  spirits.:{:  From  the  1st 
of  October,  1789,  to  the  30th  of  September,  1790,  the  gross 
product  of  the  duties  on  imports  amounted  to  $2,130,224. ; 
the  net  amount,  minus  discount,  drawbacks  and  expense  of  col- 
lection, being  $1,903,709.  According  to  the  official  exhibit 
of  imports  (see  appendix)  there  were  imported  in  the  period 


*  In  his  tour  of  the  Eastern  States,  after  tlie  adjournment  of  the  first 
eeasion  of  Congress,  Washington  purposely  avoided  Rhode  Island.  (See 
Hildreth.Vol.  IV.,  p.  149.) 

f  Hamilion's  report  to  the  House  of  Representatives,  April  22,  1790. 

t  The  tables  of  Exports  and  Imports  contained  in  the  appendix  to  this 
book,  be:in  with  the  year  1790.  For  their  compilation,  which  required 
great  pkill  and  attention,  I  am  indebted  to  the  kindness  of  my  friend  Mr. 
W.  Burchard,  a  staiisticiau  of  large  experience. 


36  LIQUOR   LAWS    OF   THE    UNITED    STATES. 

named :  90,813  gallons  and  18,997  dozen  bottles  of  beer,  ale 
and  porter  ;  3,8-l-l,411  gallons  of  spirits ;  271,007  gallons  of 
Madeira  Wine,  and  616,751  gallons  of  other  wine ;  the  dnty 
on  these  imports  yielding  a  gross  revenue  of  over  half  a  mil- 
lion dollars.  If  the  net  amount  of  the  revenue  obtained  under 
the  operation  of  the  tariff  act  of  July  4,  1789,  be  placed 
opposite  the  sum  necessary  for  the  maintenance  of  government 
and  the  payment  of  the  annual  interest  on  the  public  debt — 
both  items  amounting  in  the  aggregate  to  $2,839,163 — it  will 
be  understood  that  an  increase  of  means  of  revenue  was  un- 
avoidable. Hamilton,  in  his  report  of  the  14tli  of  January, 
1790,  and  again  in  his  communication  to  the  House  of  Kepre- 
sentatives,  dated  March  4tli,  1790,  recommended  an  increase 
of  the  specific  duties  on  imported  spirituous  liquors,  and  the 
introduction  of  a  system  of  internal  revenue.  In  the  former 
report  he  says,  dealing  exclusively  with  wines,  spirituous 
liquors,  tea  and  coffee  as  objects  of  additional  taxation : 

"  That  the  articles  which  have  been  enumerated,  will,  better 
than  most  others,  bear  high  duties,  can  hardly  be  a  ques- 
tion. They  are,  all  of  them,  in  reality,  luxuries ;  some  of 
them,  in  the  extent  in  which  they  are  used,  pernicious 
luxuries.  And  there  is,  perhaps,  none  of  them,  which  is 
not  consumed  in  so  great  abundance,  as  may  justly  denomi- 
nate it  a  cause  of  national  extravagance  and  impoverish- 
ment. The  consumption  of  ardent  spirits,  particularly, 
no  doubt  very  much  on  account  of  their  cheapness,  is 
carried  to  an  extreme  which  is  truly  to  be  regretted,  as 
well  in  regard  to  the  health  and  morals,  as  to  the  economy 
of  the  community. — Should  the  increase  of  duties  tend 
to  a  decrease  of  consumption  of  those  articles,  the  effect 
would  be,  in  every  way,  desirable.  The  saving  which  it 
would  occasion  would  leave  individuals  more  at  their  ease, 
and  promote  a  favorable  bahince  of  trade.     As  far  as  this 


CHAPTER    II.  37 

decrease  might  l:>e  applicable  to  distilled  spirits,  it  woiild 
encourage  the  suhstitution  of  cider  and  malt  li<iuors^ 
benefit  agriculture,  a7id  open  a  new  and  productive  source 
of  revenue y 

It  required   a   degree   of  moral  intrepidity  commensurate 
with   the   many  eminent   qualities  of  Hamilton's   mind    and 
character,  to  recommend  the  adoption  of  a  policy  which,  in 
the  first  session  of  Congress,  was  repeatedly  rejected,  although 
neither  formally  offered  for  consideration,  nor  directly  dis- 
cussed.    In  the  face  of  previous  Congressional  debates  on  the 
subject,    he     could    not    ignore  the    unpopularity    of     the 
measures  he  proposed,  nor  is  it  probable  that  he  failed  to  see 
how,  in  heeding  the   sacred   voice   of  duty  and  obeying  the 
dictates  of  necessity,  he  gave  his  opponents  an  enticing  oppor- 
tunity of  posing  as  champions  of  the  people's  rights — an  oppor- 
tunity of  which  it  was  to  be  feared  they  would  but  too  gladly 
avail  themselves,  at  his  expense.     An  easy  matter  under  then 
existing  circumstances !     The   American  people  had  not  yet 
become  fully  habituated  to  their  sovereignty ;  they,  in  some 
measure,  still   looked  upon  the  General  Government  as  some- 
thing above  and  outside  of  themselves,  more  or  less  antagonistic 
to  their  rights.     And    of  these  rights   they  were   equally  as 
jealous,  as  they  had  shown  themselves  capable  of  vindicating 
them.     Owing  to  the  methods  of  collection  by  which  excises 
were  usually  rendered  effective,  these  measures  were  generally 
regarded  as  oppressive ;  and  the  same  was  thought  of  any  system 
that  could  have  been  proposed  in  prevention  of  smuggling  ;  so 
that  the  propounder  of  such  measures  must  as  inevitably  be- 
come a  victim  of  public  animosity,  as  the  opponent  an  object 
of  admiration.     That  Hamilton  was  fully  aware  of  this  fact, 
appears   from  his  sagacious  anticipation  of  the  most   telling 
objections  to  high  duties — so  far  as  they  related  to  the  danger 
of  inviting  evasions  of  the  law — and  to  an  excise  system.     In 


38  LIQUOR   LAWS    OF   THE   UNITED    STATES. 

his  propositions  relative  to  the  public  credit,  advocating  the 
loan  of  various  sums  of  money  sufficient  to  discharge  the 
arrears  of  interest  and  to  meet  the  obligations  to  be  incurred 
by  the  assumption  of  the  state  debts,  and  laying  out  a  plan 
for  obtaining  revenue  for  the  payment  of  current  obligations 
and  expenses,  he  showed  himself  completely  master  of  the 
financial  situation ;  and,  though  his  advice  was,  in  some  of  its 
essential  features,  disregarded  at  first,  he  had  the  satisfaction, 
a  year  later,  of  seeing  the  majority  of  Congress  converted  to 
his  views.  In  his  allusion  to  the  general  drift  of  public  sen- 
timent regarding  the  abuse  of  spirituous  liquors,  he  exhibited 
that  spirit  of  moderation  and  tolerance  which  distinguish  all 
his  utterances  and  actions.  Like  Dr.  Rush,  the  great  temper- 
ance advocate  of  thoje  days,*  he  was  opposed,  not  to  the 
moderate  use,  but  to  the  vicious  abuse  of  distilled  spirits,  and, 
convinced  of  the  impossibility  of  summarily  obliterating  the 
evil  of  excess,  deeply  rooted  in  the  habits  of  the  people,  he, 
with  the  majority  of  his  enlightened  contemporaries,  conceived 
the  idea  of  gradually  undermining  the  habit  by  the  introduc- 
tion of  a  mild  stimulant,  invigorating  the  mind  and  strengthen- 
ing the  body. 

That  part  of  his  revenue  propositions  which  relates  to  the 
objects  under  present  consideration,  was  sub-divided,  as  has 
been  stated,  into  increased  import  duties  and  an  excise  on 
distilled  spirits.  The  import  duties  were  to  be :  on  Madeira 
wine,  thirty  cents  per  gallon ;  on  sherry,  25  cents;  on  other 
wines,  twenty  cents ;  distilled  spirits   from   twenty   to  forty 


*  Nothing  can  be  less  justifiable  than  an  attempt  to  corroborate,  by- 
reference  to  this  author,  the  assertion  that  ardent  spirits  were  at  that  period 
regarded  as  poison.  Dr.  Rush,  in  his  "  Account  of  the  life  and  death  of 
Edward  Drinker"  says  approvingly  :  "  The  time  and  manner  in  which  he 
used  spirituous  liquors,  I  believe,  contributed  to  lighten  the  weight  of  his 
years,  and  probably  to  prolong  his  life.  Give  wine  to  him  that  is  of  a 
heavy  heart,  and  strong  drink  to  him  that  is  ready  to  perish." 


CHAPTER  n.  39 

cents  per  gallon,  according  to  their  per  cent  below  or  above  a 
o-iveu  proof.  The  internal  taxes  were  to  be  from  eleven  to 
thirty  cents  per  gallon,  on  spirits  manufactured  from  molasses 
and  other  foreign  material ;  and  from  ten  to  twenty-five  cents 
per  gallon,  on  spirits  distilled  from  domestic  products ; — the 
rate  of  tax  to  be  determined,  as  in  the  former  case,  by  the 
alcoholic  strength  of  these  liquors.  Spirits  distilled  outside 
of  cities,  towns  and  villages  were  to  be  taxed  at  the  rate 
of  sixty  cents  annually  for  every  gallon  of  the  capacity  of 
each  still. 

During  the  second  session — lasting  from  January  4th  to 
August  12th,  1790 — the  attention  of  the  House  of  Kepresen- 
tatives  was  so  monopolized  by  the  funding  scheme,  the  proposed 
assumption  of  the  State  debts  and  the  bill  fixing  the  perma- 
nent seat  of  Government,  that,  beside  the  former  propositions, 
little  else  of  Hamilton's  report  reached  a  stage  favorable  to  a 
thorough  ventilation  and  dispassionate  consideration.  With 
his  recommendation  to  assume  the  debts  of  the  States,  Hamil- 
ton had  thrown  the  firebrand  of  discord  into  the  House.  The 
waves  of  sectionalism  ran  high,  dashing  furiously  against  the 
frail  structure  of  harmony  which  the  mediatory  spirit  of  the 
preceding  session  had  erected  ;  and  it  was  only  by  a  compro- 
mise, effected  at  the  eleventh  hour,  that  a  danger  could  be 
averted  which  seemed  to  threaten  the  very  existence  of  govern- 
ment The  bill  fixing  the  permanent  seat  of  government 
ofifered  a  basis  for  this  compromise.  The  Southern  members 
wished  to  have  the  national  capital  on  the  banks  of  the  Poto- 
mac (the  bill  was  so  worded) ;  the  members  from  the  Eastern 
and  Middle  States  were  for  the  Susquehanna  ;  the  latter  mem- 
bers for,  the  former  against  the  assumption  of  the  State  debts. 
"  Each  measure,"  says  Benton,  "  failed  by  small  majorities ; 
both  were  afterwards  passed.  Two  members  from  the  Potomac, 
who  had  voted  against  assumption,  agreed  to  change  their 
votes ;  a  few  from  the  Eastern   and   Middle  States,  who   had 


40  LIQUOR   LAWS    OF   THE    UNITED    STATES. 

voted  against  the  Potomac,  agreed  to  change  in  its  favor,  and 
80  the  two  measures  passed."* 

The  wrangling  in  the  House  only  terminated  with  the  close 
of  the  session ;  and  it  is  owing  to  this  dangerous  dispute  that 
the  essential  features  of  Hamilton's  revenue  propositions  failed 
to  obtain  mature  consideration  ;  while  his  excise  plan  was 
rejected. 

In  addition  to  an  act  "  to  provide  more  effectually  for  the 
collection  of  duties  " — embracing  a  few  of  the  many  correct- 
ives for  the  shortcomings  pointed  out  by  Hamilton  as  impedi- 
ments in  the  way  of  realizing  the  object  of  the  act  of  1789, 
and  extending  also  to  Rhode  Island  and  North  Carolina,  who 
had  in  the  meantine  ratified  the  Constitution — a  bill  was  passed 
in  this  session,  and  approved  August  10th,  1790,  increasing  the 
specific  and  ad  valorem  duties  on  articles  imported  into  the 
United  States ;  but  only  partly  on  the  scale  recommended  by 
the  Secretary  of  the  Treasury.  The  Senate,  who  in  the  pre- 
vious session  had  sided  with  the  minority  of  the  House  in 
reducing  the  rates,  now  pursued  the  opposite  course,  encour- 
aged, no  doubt,  by  the  strong  indications  of  the  groundlessness 
of  the  apprehensions  regarding  smuggling.  An  appreciable 
increase  of  revenue — though  not  as  large  as  recommended — 
was  thereby  effected.  The  duties  laid  by  this  act  on  wines, 
distilled  spirits,  malt  liquors,  malt  and  molasses  were  as 
follows : 

On  Madeira  wine  of  the  quality  of  London  particular,  per 
gallon,  thirty-five  cents  ;  other  Madeira  wine,  per  gallon, 
thirty  cents;  on  sherry  wine,  per  gallon,  twenty-five 
cents  ;  other  wines, per  gallon,  twenty  cents;  on  distilled 
spirits,  of  more  than  ten  per  cent  below  proof,  twelve 
cents ;  if  more  than  five,  and  not  more  than  ten  per  cent. 


*  See  Hildreth's  History,  Vol.  IV.,  p.  210  ;  and  Benton's  Abridgement, 
&c.,  Vol.  I,  foot-note  page  250. 


CHAPTER   IT. 


41 


below  proof,  per  gallon,  twelve  and  one  half  cents  ;  if  of 
proof,  and  not  more  than  five  per  cent,  below  proof,  per 
gallon,  thirteen  cents  ;  if  above  proof,  but  not  exceeding 
twenty  per  cent.,  per  gallon,  fifteen  cents;  it'  more  than 
twenty,  and  not  more  than  forty  per  cent,  above  proof, 
per   gallon,  twenty  cents;  if  more   than    forty  per  cent, 
above  proof,  per  gallon,  twenty-five  cents. 
On  beer,  ale  and  porter  in  casks,  per  gallon,  five  cents  ;  in 
bottles,  per  dozen,  twenty  cents. 
On  molasses,  per  gallon,  three  cents. 
On  malt,  per  bushel,  ten  cents. 

The  law  to  provide  more  effectually  for  the  collection  of 
duties   was  partially  based  on  the  views  of  Hamilton,  who 
believed  that  the  only  expedient  of  conciliating  high  duties 
with  a  safe  collection  was  the  establishment  of  a  second  or 
interior  scrutiny.     The  re-districting  of  States— now  including 
Khode  Island  and  i^orth  Carolina— was  also  effected  by  this 
law.     Thus,  it  will  be  seen,  that  the  most  important  revenue 
measures,  submitted   at   the   beginning  of  the   session,  were 
ignored,   while   the   causes   which   had   dictated   them   were 
increased  in  magnitude  and  multiplied  in  form.     Under  such 
circumstances,  the  logic  of  events  could  not  fail  to  compel  the 
ultimate   sanction  of  the  modes  and   extent  of  taxation  pre- 
viously described,  and  it  was  to  be  foreseen  that   the  insuffi- 
ciency of  existing  laws  would  lay  bare   the  untenableness  of 
the  position  of  those  law-makers  who  opposed  high  duties  from 
a  fear  of  evasions  of  the  law,  yet  were  adverse  to  measures  for 
the  prevention    of  smuggling ;  and    opposed  excises  quite  as 
strenously  as  they  objected  to  high  duties.     Where  else  was 
the   requisite   revenue   to   come   from,  unless   direct  taxation 
should    be  resorted   to,  which  was  equally  abominable   in    the 
eyes  of  those  legislators? 

A  few  days  after  the  opening  of  the  third  session,  (Decem- 
ber 4,  1790),  Hamilton  renewed  his  propositions  in  relation  to 


42 


LIQUOR    LAWS    OF    THE    UNITED    STATES. 


an  increase  of  the  import  duties,  and  the  laying  of  internal 
duties  on  distilled  spirits,  recommending  that  the  net  product 
of  these  duties  be  applied  to  the  payment  of  the  annual 
interest  upon  the  amount  of  the  assumed  State  debts."^  He 
proposed  the  following  additions  to  the  import  duties  on  dis- 
tilled spirits,  which  are  specified  in  the  Act  of  August 
10,  1790. 


On  those  of  the  first  class  of  proof,  per  gallon,         eight  cents. 
"  "       second  "  "  "     eight  and  a  half  cts. 

"  "       third     "  "  "  nine  cents. 

"  "       fourth  "  "  "  ten  cents. 

"  "       fifth      "  "  "  eleven  cents. 

"  "       sixth     "  "  "  fifteen  cents. 


Furthermore,  he  proposed  the  following  taxes  on  spirits 
distilled  in  the  United  States,  namely  : 

If  from  molasses,  sugar,  or  other  foreign  material,  and 


Of  the  first  class  of  proof,  per  gallon, 
"    second  "  "  " 

"    third     '•  "  " 

"    fourth  "  "  " 

"    fifth      "  "  " 

"    sixth     "  "  " 


eleven  cents, 
twelve  cents, 
thirteen  cents. 
fifteen  cents. 
twenty  cents, 
thirty  cents. 


*  These  debts  amounted  to  $21,000,000.  the  amount  of  interest  thereon 
to  $788,333.33.  The  assumed  debts  of  the  various  States  were  as 
follows  • 


New  Hampshire $300,000 

Massachusetts 4,000,000 

Rhode  Island. . . 200,000 

Connecticut   1,600,000 

New  York 1 ,200,000 

New  Jersey 800,000 


Pennsylvania 2,200,000 

Delaware 200,000 

Maryland 800,000 

Virg-inia 3,200,000 

North  Carolina 2,200,000 

South  Carolina 4,000,000 


Georgia 300,000 


CHAPTER    n.  ^3 


If  from  materials   of  the  growth   and   production  of  the 
United  States,  and 


Of  the  first  class  of  proof,  per  gallon, 
"      second  "  " 

"      third 

"      fourth  "  " 

"      fifth  "  " 

"      sixth  "  " 


nine  cents. 

ten      " 

eleven     " 

.  thirteen      '* 

seventeen     " 

twenty-five      " 


The  oft-described  apprehensions  on  account  of  the  evasions 
of  the  law,  to  which  high  duties  were  supposed  to  give  rise, 
were  anticipated  by  Hamilton  in  these  words : 

"  The  expediency  of  improving  the  resource  of  distilled 
spirits,  as  an  article  of  revenue,  to  the  greatest  practicable 
extent,  has  been  noticed  upon  another  occasion.  There  is 
scarcely  an  attitude  in  which  the  object  can  present  itself, 
which  does  not  invite,  by  all  the  inducements  of  sound  policy 
and  public  good,  to  take  a  strong  and  effectual  hold  of  it.— 
The  mode  of  collection  appears  the  only  point  about  which  a 
difficulty  or  question  can  arise.  The  Secretary  begs  leave  to 
remark,  that  there  appear  to  him  two  leading  principles,  one 
or  the  other  of  which  must  characterize  whatever  plan  may 
be  adopted.  One  of  them  makes  the  security  of  the  revenue 
to  depend  chiefly  on  the  vigilance  of  t\ie  public  officers.  The 
other  rests  essentially  on  the  integrity  of  individuals  inter- 
ested to  avoid  the  payment  of  it.  *  *  *  The  oaths  of  the 
dealers  have  been  almost  the  only  security  for  their  compliance 
with  the  laws.  It  cannot  be  too  much  lamented  that  these 
have  been  found  inadequate  dependence.  But  experience  has, 
on  every  trial,  manifested  them  to  be  such.  Taxes  or  duties, 
relying  for  their  collection  on  that  security,  wholly  or  almost 
wholly,  are  uniformly  unproductive.  And  they  cannot  fail  to 
be  unequal  as  long  as  men  continue  to  be  discriminated  by 


4:4  LIQFOK   LAWS    OF   THE    UNITED    STATES. 

unequal  portions  of  rectitude.  The  most  conscientious  will 
pay  most ;  the  least  conscientious,  least." 

In  respect  to  excises,  he  showed  that  the  system  which 
it  was  contemplated  to  inaugurate,  obviated  the  two  great 
objections  commonly  urged  against  this  mode  of  taxation, 
namely,  the  summary  jurisdiction  confided  to  officers  of  excise  • 
and,  secondly,  the  general  power  vested  in  these  officers,  of 
visiting  and.  searching  indiscritninately  the  houses  and  stores 
of  dealers  in  excised  articles. 

On  the  5th  of  January,  a  bill — modelled  after  Hamilton's 
propositions — repealing,  after  a  certain  time,  the  act  laying 
duties  on  distilled  spirits,  (fee,  and  imposing  others  in  their 
stead,  was  taken  up  for  consideration  by  the  House  of  Repre- 
sentatives, and  at  once  put  to  a  crucial  test,  on  a  motion,  made 
by  Jackson  (Florida),  to  strike  out  the  essence  of  the  first 
clause.  This  motion  was  rejected  by  a  great  majority, — and 
thus  the  ultimate  fate  of  the  measure  seemed  to  be  ascertained 
beforehand,  with  moderate  accuracy.  Jackson's  exceptions  to 
an  excise,  from  a  Southern  point  of  view,  are  remarkable  for 
more  than  one  reason,  the  most  interesting  of  them  being  the 
exact  truthfulness  of  his  statement  relative  to  the  climatic  con- 
ditions which  led  the  Southern  people  to  the  exclusive  use  of 
ardent  spirits. 

He  thought  the  law  would  be  particularly  unpopular  and 
and  oppressive  in  the  Southern  States  because  "  the  citizens  of 
those  States  have  no  alternative  to  adopt,  by  which  they  can 
diminish  the  weight  of  tax ;  no  hreweries  or  orchards  to  fur- 
nish a  substitute  for  spirituous  liquors  /  hence  these  become 
a  necessary  article.  They  were  not  only  necessary,  but  salutary 
in  the  Southern  regions.  This  had  been  acknowledged  by  an 
Eastern  author,  Mr.  Morse,  an  authority  which  he  presumed 
would  not  be  disputed  by  the  Northern  gentlemen,  especially 
when  it  is  considered  that  he  is  a  clergyman.  Mr,  Morse  declared 
that  grog  is  a  necessary  article  of  drink  in  the  Southern  States." 


CHAPTER   II.  >  45 

Jackson  was  particularly  severe  in  his  strictures  on  the  petition 
of  the  college  of  physicians,  which  had  lately  been  read  in  the 
House,  on  the  subject  of  distilled  spirits.  They  might,  he 
thought,  with  equal  propriety  interpose  their  offices  to  prevent 
the  use  of  many  articles  which  were  deemed  poisonous  or  of 
pernicious  quality ;  they  might,  for  instance,  petition  Congress 
to  pass  a  law  prohibiting  the  use  of  mushrooms,  because  some 
ignorant  persons  had  been  poisoned  by  eating  that  plant. 

In  giving  vent  to  his  opposition  to  excises  on  general  prin- 
ciples, he  fell  into  an  error,  common  in  those  days  with 
politicians  of  intellectual  mediocrity  ;  he  referred  to  the  unpo- 
pularity of  excises  in  England,  but  either  purposely  or 
unwittingly  ignored  the  fact,  that  the  wide  difference  in  the 
state  of  affairs  of  both  countries  absolutely  precluded  a  ration- 
nal  parallelism.  In  England  the  rapacity  of  the  government  had, 
for  so-called  State  reasons,  unintelligible  to  the  masses,  abused 
the  taxing  power,  in  this  form,  to  an  extent,  subversive  of  the 
material  welfare  of  the  people,  as  well  as  of  their  rights; 
whereas  in  our  country  this  mode  of  taxation  was  adopted,  in 
its  least  objectionable  form,  under  stress  of  circumstances 
created  by  the  people  in  their  successful  struggle  for  political 
independence.  In  England  the  tax  included  many  necessaries 
of  life,  and  rose  to  a  figure  which  placed  before  the  manu- 
facturer the  alternative  of  abandoning  an  unprofitable  business, 
or  cheating  the  purchaser  by  the  offer  of  spurious  articles ; 
whereas  in  the  United  States  the  tax  extended  to  but  a  few 
articles  of  consumption,  not  absolutely  necessaries  of  life,  and 
was,  withal,  so  low  that  it  could  not  affect  the  quality  of  the 
articles  taxed.  Parker  (Virginia)  objected  to  the  manner 
of  collecting  internal  duties,  exaggerating — nigh  unto  ludi- 
crous distortion — the  infringements  on  the  people's  rights  to 
which  it  was  alleged  the  measure  would  give  a  clear  field.  "  It 
will^''  he  said,  "  convulse  the  Government ;  it  will  let  loose  a 
swarm  of  harpies,  who,  under  the  denoniination  of  revenue 


46  LIQUOR    LAWS    OF    THE    TTNITED    STATES. 

officers  toill  range  through  the  country^  prying  into  every 
marCs  house  and  affairs,  and  like  a  Macedonian  phalanx 
hear  doion  all  hefore  them.'''  These  words  are  here  typograph- 
ically emphasized,  because  they  sounded  the  keynote  of  that 
spirit  of  defiant  opposition  to  which  the  American  people  owe 
the  subsequent  open  resistance  by  the  people  of  "Western 
Pennsylvania  to  the  execution  of  the  excise  law. 

Jackson,  Parker  and  Stone  (the  latter  from  Maryland)  were 
opposed  to  the  measure  for  the  further  reason,  that,  as  they 
thought,  no  necessity  existed  for  additional  revenue.  A  simple 
reference,  by  Lawrence,  to  the  exhibit  of  revenues  derived 
from  import  duties  and  tonnage  during  the  year  ended  in 
September,  1790,  sufficed  to  reveal  the  fallacy  of  this  assertion. 
The  rejection  of  Jackson's  motion  closed  that  day's  parliamen- 
tary combat,  in  Avhich,  by  the  way,  the  friends  of  the  measure 
offered,  in  the  matter  of  arguments,  merely  a  passive  resist- 
ance, very  effectively  opposing  the  vis  inei^tice  to  the  rather 
virulent  assaults  from  Southern  members. 

On  the  next  day  (January  6.)  Parker  moved  to  strike  out 
the  section  specifying  the  rates  of  duties,  and  renewed  his 
aro-uments  against  the  mode  of  collection.  The  alternative  of 
adopting  an  excise  system,  or  resorting  to  direct  taxes,  and  the 
preferableuess  of  the  former  mode  of  taxation  were  pointed  out 
by  Madison,  who  confessed,  that  he  also  would  oppose  excises, 
if  any  other  less  objectionable  mode  of  raising  revenue  could 
be  devised.  Lawrence  adverted  to  the  act  of  last  session,  by 
which  the  debts  of  the  States  were  assumed,  and  the  obliga- 
tions of  the  General  Government  increased.  He  also  pointed 
out  the  deficiency  in  the  revenue  already  existing,  and  expressed 
it  as  his  opinion  that,  in  view  of  the  pressing  demand  for 
additional  revenues,  the  duties  contemplated  in  the  bill  ap- 
peared the  most  obvious  for  the  Government  to  recur  to. 
A  rigorous  collection  would  bear  hard  only  on  the  dishonest, 
while  it  would  protect  the  fair  trader  from  bearing  an  undue 


CHAPTER   II. 


47 


proportion  of  the  public  burdens.     He  doubted  whether  direct 
'taxes  would   be  agreeable,    even    to  the  gentlemen  who   had 
mentioned  them.     Steele  (North   Carolina)   feared   that   the 
situation  of  affairs  in  some  of  the  Southern  States,  especially 
the  one  he   represented,  would  help   to  breed  great  discon- 
tent at  a  system  of  excise.     Such,  he  said,  was  the  state  of  the 
public  mind,  in  various  parts    of  the    Union,  that  he  should 
dread  taking  any    measures  which    serve  to  increase  the  fer- 
mentation which  the  people  are  in.     An  excise  he    considered 
of  that  nature.     He  thought  a  direct  or  poll  tax,  or  duties  on 
navigation,  law  proceedings,  legal  conveyances,  etc.,  preferable 
to  excises.     One  of  his  singular  statements  was,  that  the  con- 
sumption   of  ardent   spirits   in   North  Carolina  was  so  gre«it, 
that  the  duty  would  amount  to  about  ten  times  as  mucl.  as  in 
the  State  of  Connecticut.     Livermore  (New  Hampshire)  liked 
the  bill,  and  thought  the  people  would ;  they  would  consider 
this   mode   of  taxation  as  drinking  down  the  national  debt. 
He  and  Sedgwick  (Massachusetts)  defended  the  entire  mea- 
sure   from    a    Hauiiltonian     standpoint,    showing    that    the 
obnoxious  features  of  English  excise  laws,  which   had  been 
adverted  to  as  evidences  of  the  unrepublican  character  of  such 
taxation    and    its    consequent    unpopularity,  were    carefully 
avoided  in  the  bill  under  consideration.     Of  all  the  subjects 
of  revenue  within  the  power  of  Congress,  they  deemed  none  so 
proper  as  the  internal  duty  on  ardent  spirits  contemplated  by 
the  bill.     The  import  duties  had  been  extended  as  far  as  sound 
policy  dictated,  and  there  remained  only  excises  to  be  resorted  to, 
unless  direct  taxes  were  to  be  adopted.     Popular  sentiment  was 
more  strongly  opposed    to   the  latter  taxes  than    to   an  excise 
duty  on   spirituous  liquors.     Furthermore,   Sedgwick  said,  It 
should  be  observed  that  in  all  insensible  modes  of  taxation  a 
much  greater  sum  would  be  obtained  from  an  individual  tlian 
by  any  mode  of  direct  imposition:  this,  without  entering  into 
a  discussion  of  the  reasons  upon  which  it  was  founded,  could 


48  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

be  demonstrated  by  a  fact.  He  instanced  the  porters  of  Lon- 
don, from  whom,  in  the  single  article  of  beer,  was  drawn  ten 
times  as  much  as  could  be  procured  by  the  most  rigorous  mode 
of  direct  taxation.  Though  he  attached  no  weight  to  the  moral 
considerations  urged  agu'nst  the  great  consumption  of  ardent 
spirits,  he  thought  a  diminution  in  the  consumption  of  those 
liquors  would  not  be  attended  with  any  sensible  inconve- 
nience. 

The  imputation  of  a  lack  of  patriotism,  which  some  of  the 
Southern  members  had  cast  on  their  own  States,  evoked  a  very 
energetic  protest  from  Smith  (of  South  Carolina),  who  felt 
convinced  that  the  Southern  people  would  submit  without 
complaint  to  any  measures  which  the  General  Government 
would  see  proper  to  adopt ;  and  all  the  more  willingly  would 
they  do  so  in  this  case,  when,  seeing  and  judging  for  them- 
selves, they  would  find  the  tax  proposed  to  be  equal  and  just. 
On  the  21st  of  January,  a  unique  bit  of  discussion  on  what  to- 
day would  be  styled  civil  service  reform  took  place,  on  the 
motion  to  amend  the  bill,  by  adding  a  clause  to  prevent  in- 
spectors, or  any  officers  under  them,  from  interfering  in 
elections,  further  than  giving  their  own  votes.  The  arguments 
in  favor  of  this  amendment  form  a  forecast  of  the  circum- 
stances which  gave  birth  to  the  law  on  the  same  subject,  in 
force  at  the  present  time  ;  hence,  to  the  members  using  them 
would  have  to  be  accorded  credit  for  great  foresight,  were  it 
not  for  the  fact  that  the  pictures  they  drew  of  possible  abuses 
of  official  power  were  borrowed  from  English  examples.  It 
was  feared  that  the  power  vested  in  inspectors  would  give 
these  officers  many  opportunities  of  acquiring  such  a  know- 
ledge of  persons  and  characters,  as  would  enable  them  unduly 
to  influence  election  results.  On  the  other  hand  it  was  con- 
tended that  to  prevent  any  citizen  from  publicly  or  privately 
uttering  his  opinions  on  political  affairs,  would  be  equivalent 
to  depriving  him  of  rights,  inalienably  vested  in  citizenship. 


CHAPTER   II. 


49 


Citizens  of  good  character  and  standing  in  the  community 
would  not  accept  an  office  coupled  with  such  a  degrading  con- 
dition, and  the  Executive  would  consequently  be  com- 
pelled to  appoint  irresponsible  persons,  alike  willing  to  take 
the  office  and  suifer  the  degradation.  This  rather  exalted  view 
of  the  matter  prevailed  with  a  large  majority  of  the  members ; 
the  vote  on  the  adoption  of  the  amendment  being:  Yeas,  21 ; 
Nays,  37.  With  this  vote,  the  virulent  opposition  to  the  bill, 
fomented  at  the  beginning  of  the  discussion  by  resolutions 
passed  by  the  Pennsylvania  Legislature,  and  demonstrations  of 
discontent  from  other  quarters,*  sullenly  yielded  ;  and  on  the 
27th  of  January  the  bill  passed  the  House  by  a  vote  of 
35  to  21. 

Smith,  who  had  so  manfully  vindicated  the  honor  of  the 
Southern  States,  voted /or  the  bill  ;  so  did  four  members  from 
Yirginia,  namely  :  Madison,  Griffin,  Lee  and  White.  Alto- 
gether, only  five  Southern  votes  were  cast  for  the  bill.  Two 
members  from  New  York  and  three  from  Pennsylvania  voted 
with  the  majority  of  Southern  representatives  against  the 
act. 

As  finally  passed,  the  act,  (approved  March  3,  1791) 
embraced  the  essence  of  Hamilton's  suggestions.  The  import 
duties  on  distilled  spirits  were  fixed  as  follows : 

For  every  gallon  of  spirits,  more  than  ten  per  cent  below  proof, 

twenty  cents. 
For  every  gallon  of  spirits  under  five  and  not  more  than  ten 

per  cent  below  proof,  twenty -one  cents. 
For  every  gallon   of  spirits  of  proof,  and  not  more  than  five 

per  cent  below  proof,  twenty-two  cents. 
For  every  gallon   of  spirits   above   proof,  but    not   exceeding 

twenty  per  cent,  twenty-five  cents. 


*  The  succeeding  chapter  treats  at  some  length  of  these  demoustrations 
of  disconteut- 


50  LIQtTOR    LAWS    OF   THE    UNITED    STATES. 

For  every  gallon  of  spirits  more  than  twenty,  and  not  more 
than  forty  per  cent  above  proof,  thirty  cents. 

For  every  gallon   of  spirits  more  than  forty  per  cent  above 
proof,  forty  cents. 
Here    is    the   text   or    purport    of  the    principal    sections 

relating  to  excise  duties  : 

Section  14.  And  be  it  further  enacted,  That  upon  all  spirits  which 
after  the  last  of  June  next,  shall  he  distilled  within  the  United  Slates, 
wholly  or  in  part  from  molasses,  sugar  or  other  foreign  materials,  there 
shall  be  paid  for  their  use  the  duties  following;  that  is  to  say ; — For  every 
gallon  of  these  spirits  more  than  ten  per  cent,  below  proof,  according  to 
Dicas'  hydrometer,  eleven  cents.  For  every  gallon  of  those  spirits  under 
five  and  not  more  than  ten  per  cent,  below  proof,  twelve  cents.  For  every 
gallon  of  these  spirits  of  proof,  and  not  more  than  five  per  cent,  below 
proof,  thirteen  cents.  For  every  gallon  of  those  spirits  above  proof,  and 
not  exceeding  twenty  per  cent.,  fifteen  cents.  For  every  gallon  more  than 
twenty,  and  not  more  than  forty  per  cent,  above  proof,  twenty  cents.  For 
every  gallon  more  than  forty  per  cent,  above  proof,  thirty  cents. 

Section  15.  That  upon  all  spirits,  which  after  the  last  day  of  June  next, 
shall  be  distilled  within  the  United  States,  from  any  article  of  the  growth 
or  produce  of  the  United  States,  in  any  city,  town  or  village,  there  shall  be 
paid  for  their  use  the  duties  following  ;  that  is  to  say  : — For  every  gallon 
more  than  ten  per  cent,  below  proof,  according  to  Dicas'  hydrometer,  nine 
cents.  For  every  gallon  under  five  and  not  more  than  ten  per  cent,  below 
proof,  ten  cents.  For  every  gallon  not  more  than  five  per  cent,  below  proof, 
eleven  cents.  For  every  gallon  above  proof,  but  not  exceeding  twenty  per 
cent.,  thirteen  cents.  For  every  gallon  more  than  twenty  and  not  more 
than  forty  per  cent,  above  proof,  seventeen  cents.  For  every  gallon  more 
than  forty  per  cent,  above  proof,  twenty-five  cents. 

Section  16.  That  the  said  duties  on  spirits  distilled  within  the  United 
States  shall  be  collected  under  the  management  of  the  Supervisors  of  the 
Revenue. 

Section  17.  That  the  said  duties  on  spirits  shall  be  paid  or  secured 
previous  to  the  removal  thereof  from  the  distilleries  at  which  they  are 
respectively  made.  And  it  shall  be  at  the  option  of  the  proprietor  or  pro- 
prietors of  each  still  either  to  pay  the  said  duties  previous  to  such  removal, 
with  an  abatement  at  the  rate  of  two  cents  for  every  ten  gallons,  or  to  secure 
the  payment  of  the  same,  by  giving  bond  quarter-yearly,  with  one  or  more 
sureties,  to  the  satisfaction  of  the  chief  officer  of  inspection  within  whose 


CHAPTER   n.  51 

survey  such  distillery  shall  be,  and  in  such  sum  as  the  said  officer  shall 
direct,  with  the  condition  for  the  payment  of  the  duties  upon  all  such  of  the 
said  spirits  as  shall  be  removed  from  such  distillery,  within  three  months 
next  ensuing  the  date  of  the  bond  at  the  expiration  of  nine  months  of  the 
said  date. 

Section  18.  That  the  Supervisor  of  each  district  shall  appoint  proper 
officers  to  have  the  charge  and  survey  of  the  distilleries  within  the  same, 
assigning  to  each  one  or  more  distilleries  as  he  may  think  proper,  who 
shall  attend  to  such  distilleries  at  all  reasonable  times,  for  the  execution  of 
the  duties  by  this  act  enjoined  on  him. 

Section  19.  That  previous  to  the  removal  of  spirits  from  any  distil- 
lery, the  officer  within  whose  charge   and  survey  the  same  may  be,  shall 
brand  or  otherwise  mark  each  cask  containing  the   same,  in  durable  char- 
acters, and  with  progressive  numbers,  and  with   the  name  of  the  acting 
owner  or  other  manager  of  such  distillery,  and  of  the  place  where  the  same 
was  situate,  and  the  quantity  therein,  to  be  ascertained  by  actual  guaging, 
and  with  the  proof  thereof.     And  the  duties  thereupon  having  been  first 
paid  or  secured,  as  above  provided,  the  officer  shall  grant  a  certificate  for 
each  cask  of  the  said  spirit,  to  accompany  the  same  wheresoever  it  shall  be 
sent,  purporting  that  the  duty  thereon  hath  been  paid  or  secured,  and  de- 
scribing each  cask  by  its  marks  ;  and  shall  enter  in  a  book  for  that  purpose 
to  be  kept,  all  the  spirits  distilled  at  such  distillery,  and  removed  from  the 
same  ;  and  the  marks  of  each  cask,  and  the  persons   for  whose  use,  and  the 
places  to  which  removed  and  the  time  of  each  removal,  and  the  amount  of 
duties  on  the  spirits  so  removed.     And  if  any  of  the  said  spirits  shall  be 
removed  from  any  such  distillery  without  having  been  branded  or  marked, 
or  without  such  certificate,  the  same,  together  with  the  cask  containing,  and 
the  horses  or  cattle,  with   the   carriages,  their  harness   and   tacliling,  the 
vessel  or  boat  with  its  tackle  and   apparel,  employed  in  removing  them, 
shall  be  forfeited,  and  may  be  seized  by  any  officer  of  inspection.     And  the 
Superintendent  or  manager  of  such   distillery  shall  also  forfeit   the  full 
value  of  the  spirits  so  removed,  to  be  computed  at  the  highest  price  of  like 
spirits  in  the  market. 

Section  20.  That  no  spirits  shall  be  removed  from  any  distillery  at  any 
other  times  than  between  sun  rising  and  sun  setting,  except  by  consent  and 
in  the  presence  of  the  officer  having  the  charge  and  survey  thereof,  on  pain 
of  forfeiture  of  such  spirits,  or  of  the  value  thereof  at  the  highest  market 
price,  to  be  recovered  with  costs  of  suits  from  the  acting  owner,  etc. 

Section  21.  That  upon  stills  which  after  the  last  day  of  June  next 
shall  be  employed  in  distilling  spirits  from  materials  of  the  growth  or  pro- 


52  LIQUOK    LAWS    OF    THE    UNITED    STATES. 

duction  of  the  United  States,  in  any  other  place  than  a  city,  town  or  village, 
there  shall  be  paid  for  the  use  of  the  United  States,  the  yearly  duty  of  sixty- 
cents  for  every  gallon,  English  wine-measure,  of  the  capacity  or  content  of 
each  and  every  such  still,  including  the  head  thereof." 

Section  23  prescribes  that  duties  shall  be  paid  half-yearly 
upon  demand  by  the  officer  of  the  survey  ;  and  that  in  case  of 
failure  to  pay,  the  amount  of  duties  due  may  be  recovered, 
with  costs,  in  action  of  debt,  or  may  be  levied  by  distress  and 
sale  of  goods  of  delinquent  distiller. 

Section  24:  gives  distillers  the  right  to  keep  an  account  of 
the  quantities  of  spirits  distilled  and  sold  ;  which  account,  if 
sworn  to  and  submitted  to  the  proper  officers,  shall  form  the 
basis  of  computing  the  taxable  quantity  of  spirits  distilled. 

Section  25  makes  it  incumbent  on  distillers  to  place  a 
sign  upon  a  conspicuous  part  outside  and  in  front  of  each 
building  used  for  distilling  or  keeping  ardent  spirits ;  also  to 
make  entry  of  every  such  building  at  the  nearest  office  of 
inspection. 

Section  26  authorizes  inspectors  to  visit  distilleries,  take 
account  of  spirits,  brand  casks,  keep  registry  of  stock,  give 
certificates  to  distillers,  etc. 

Section  36  provides  that  the  penalties  imposed  on  dis- 
tillers for  neglecting  to  make  report  to  inspectors  of  their 
intention  of  distilling  spirits,  or  for  neglecting  to  mark  the 
houses,  apartments  or  vessels  to  be  employed,  or  for  neglecting 
to  enter  in  books  the  quantity  distilled,  shall  not  extend  to  any 
person  employing  one  still  only,  and  that  of  a  capacity  not 
exceeding  fifty  gallons,  including  the  still-head. 

Section  60  pledges  the  net  product  of  duties  under  this 
act  for  the  payment  of  the  interest  on  loans  made  prior  to  the 
fourtli  of  August,  and  to  be  made  pursuant  to  the  Act  "  making 
provision  for  the  debt  of  the  United  States." 


CHAPTER   II.  53 

As  to  the  spirit  of  this  law,  it  will  be  noticed,  in  respect  to 
high  rates  of  import  duties,  that  the  act  indicates  a  striking  mu- 
tation of  opinions,  for  which  various  explanations  may  be  oifered. 
In  tlie  first  place,  the  necessity  for  introducing  the  much- 
dreaded  excise  system,  as  the  lesser  of  two  evils — the  alterna- 
tive of  direct  taxation  being  considered  the  greater — reconciled 
the  opponents  of  high  rates  of  imposts  with  a  system  which, 
even  if  carried  to  the  utmost  limits  proposed,  was  in  their 
opinion  still  the  least  objectionable  of  these  three  modes  of 
raising  revenue.  And  their  opposition  naturally  diminished 
in  proportion  to  the  growth  of  their  desire  to  restrain  the 
excise  within  narrow  bounds.  More  potent,  at  all  events  more 
direct  in  its  influence,  than  this  reason,  was  the  conviction, 
rapidly  gaining  ground,  that  high  duties  on  imported  articles 
could  be  made  collectable,  without  recourse  to  obnoxious  mea- 
sures of  supervision  and  control.  The  productiveness  of  the 
duties  under  the  Acts  of  July  4:th,  1789,  and  August  10th, 
1T90,  imposing  comparatively  high  rates,  helped  to  form  this 
conviction,  and  Washington's  favorable  account  of  the  opera- 
tion of  both  laws  strengthened  it.  A  further  explanation  may 
be  found  in  the  growing  inclination  to  protect  certain  manu- 
factures ;  but  it  must  be  remarked  in  this  connection  that  the 
excise  on  distilled  spirits  neutralized  in  a  degree  the  protective 
agency  of  import  duties  imposed  by  the  foregoing  law.  It  is, 
indeed,  a  most  singular  characteristic  of  the  debates  on  the 
subject,  that  the  deviation  from  the  rule  of  incidental  protec- 
tion, established  during  the  preceding  sessions,  a  deviation, 
whose  results  were  easily  to  be  foreseen,  failed  to  elicit  any 
serious  adverse  criticism.  That  the  protective  idea  was  tem- 
porarily lost  sight  of,  so  far  as  distilled  spirits  are  concerned, 
cannot  be  gainsaid.  The  Act  of  1790  imposed  an  import 
duty  of  from  twelve  to  twenty-five  cents  per  gallon,  according 
to  proof ;  the  Act  of  March  3,  1791,  fixed  a  like  duty  at  from 
twenty  to  forty  cents.     Now,  if  the  rates  of  the  excise  duties 


54  LIQrOE    LAWS    OF    THE    UNITED    STATES. 

imposed  by  the  latter  law,  namely,  from  eleven  to  thirty 
cents  per  gallon,  according  to  strength,  be  deducted  from  the 
rates  of  import — as  deducted  they  must  be,  if  the  ability  of 
the  domestic  article  to  compete  with  the  foreign  product  is  to 
be  determined — it  will  be  seen  that  the  protective  duties  were 
diminished,  as  compared  with  those  imposed  by  the  Act  of 
1790,  by  from  three  to  fifteen  cents.*  That  this  inequality, 
which  in  view  of  the  avowed  intention  of  the  legislative  majority 
may  be  termed  an  anomaly,  occurred  merely  by  an  oversight, 
will  be  shown  in  the  next  chapter. 

In  regard  to  the  excise  duty,  the  strictures  of  the  refractory 
minority  were  dictated  not  so  much  by  the  solicitude  usually 
felt  in  reference  to  measures  threatening,  or  seeming  to  threa- 
ten, the  liberty  of  citizens,  as  by  an  intense  selfishness,  jealous 
of  the  material  interests  of  a  few  localities,  indifferent  to  the 
weKare  of  the  whole  Union.  Subsequent  events  prove  that 
this  selfishness,  conspiring  with  the  popular  prejudice  against 
excises  in  general,  served  partly  as  a  lever,  partly  as  a  mask  for 
an  incipient  cabal,  which  ended  by  becoming  a  line  of  demar- 
cation between  two  great  political  parties.  It  is  true  that  any 
excise  system,  however  liberally  constituted  and  lenientlj 
carried  out,  would  have  been  unpopular ;  but  it  is  historically 
demonstrable  that  the  unpopularity  of  this  particular  measure 
would  have  occasioned  no  serious  disturbance,  had  not  the 
malevolence  of  ambitious  aspirants  for  political  fame — or  noto- 
riety— resorted  to  inflammatory  means  for  purposes  of  its  own, 
and  had  not  radical  differences  of  political  opinion  helped  to 
create  a  feeling  of  antagonism  to  the  administration,  an  anta- 
gonism proceeding  no  doubt  from  pure  motives  in  most 
instances,  from  questionable  motives  in  some,  but  in  all  from 
a  total  misconception   of  the  administration's  purposes.     The 


*  The  excise  duty  on  spirits  from  foreign  material  is,  of  course,  re- 
ferred to. 


CHAPTER    II. 


55 


attempt  to  justify  the  opposition  to  excise  duties  on  spirituous 
liquors,  on  the  ground  that  these  articles  of  consumption  were 
necessaries  of  life,  failed  to  make  any  impression  ;  for,  though 
it  may  have  been  admitted  that  in  some  localities  and  under 
certain  circumstances,  the  moderate  use  of  ardent  spirits  was 
indispensable  to  physical  comfort,  yet  the  excessive  consumption 
could  not  by  any  manner  of  reasoning  be  made  to  appear  as 
necessary  for  the  proper  sustenance  of  life. 

The  most  significant  fact  in  connection  with  the  discussion 
on  this  law  is  the  general  approval — outspoken  at  times,  tacit 
and  implied  at  others — of  the  moral  tendency,  sought  to  be 
established  as  a  policy  in  relation  to  the  liquor  traffic.  Hamil- 
ton's words,  quoted  in  this  chapter,  were  but  the  echo  of  a 
popular  sentiment  which  even  pervaded  the  speeches  of  those 
members  of  Congress,  who  opposed  the  taxing  of  ardent  spi- 
rits. "When  Jackson,  for  instance,  in  his  bitter  speech  against 
the  excise  law,  said  that  the  Southern  people  had  "  no  breweries 
or  orchards  to  furnish  a  substitute  for  spirituous  liquors,"  he 
virtually  confessed  himself  a  supporter  of  the  policy  which 
Madison,  voicing  the  sentiment  of  all  his  colleagues,  *  formu- 
lated in  the  first  session,  when  he  spoke  in  favor  of  encouraging 
and  protecting  American  breweries  for  moral  purposes,  and 
uttered  the  hope  that  this  industry  would  take  deep  root  in 
every  State  of  the  Union.  The  excise  law  is  but  another 
illustration  of  this  sentiment,  inasmuch  as  it  treats  exclusively 
of  distilled  spirits. 

*  In  all  the  debates  on  this  subject,  not  one  word  was  uttered  either 
against  the  moral  or  economic  reasons  urged  in  favor  of  this  policy. 


CHAPTER  III. 

REVIEW  OF  THE  ORIGIN',  NATURE  AND  EXTENT    OF  THE   DISCONTENT 

PROVOKED  BY  THE  EXCISE    LAW. OPPOSITION  TO    HAMILTON'S 

FISCAL  SYSTEM. JEFFERSOn's  ATTITUDE. THE  ALARMING- 
STATE  OF  AFFAIRS  IN  WESTERN  PENNSYLVANIA. BRIEF  RE- 
VIEW OF  OUTRAGES  COMMITTED  UPON  EXCISE  OFFICERS  UP  TO 
THE  END  OF  1791. — HAMILTON'S  REPORT    ON  MANUFACTURES, 

AND    ON  THE  EXCISE    LAW. HIS    RECOMMENDATIONS  ON  BOTH 

SUBJECTS. ACT  INCREASING  DUTIES  ON  DISTILLED  SPIRITS  AND 

MALT  LIQUORS. PROTECTIVE  FEATURES  OF  THIS  ACT. MODI- 
FICATION OF  THE  ACT  FOR  LAYING  INTERNAL  DUTIES  ON 
SPIRITS. 

Little  doubt  can  exist  that  the  discontent  provoked  in  some 
localities  by  the  act  laying  duties  on  spirits  distilled  within 
the  United  States,  derived  a  potent  impetus  from  the  inflam- 
matory agitations  of  the  enemies  of  Washington's  administra- 
tion; but  it  must  be  remembered  that  a  strong  repugnance  to 
excises,*  ingerminated  by  British  misrule,  had,  years  before 
the  enactment  of  the  present  law,  found  vent  in  such  official 
documents  as  may  justly  be  termed  the  prototypes  of  the  anti- 
excise  resolution  passed  by  the  Pennsylvania  Legislature,  on 
the  22d  of  January,  1791.     The  changed  condition  of  afi"airs, 


*  "  The  colonists  had  brought  with  them  from  England  a  deep  aversion 
to  excises,  -which  perpetuated  itself,  unabated,  from  generation  to  genera- 
tion. The  first  Congress,  in  its  address  of  October,  1774,  to  the  inhabitants 
of  Canada,  laid  particular  stress  on  the  imposition  of  excises  as  one  of  the 
evils  accompanying  subjection  to  England.  In  the  nullification  convention 
of  New  York,  it  was  proposed  that  the  power  to  impose  excise  duties  on 
any  article  which  grew  or  was  manufactured  in  America,  should  be  expressly 
denied  to  Congress. "  (Hoist's  Constitutional  and  Pol.  Hist,  of  the  U.  S. 
Chicago,  1877,  Vol.  I,  p.  94.) 


CHAPTER  m.  67 

by  which  the  rebellious  subjects  of  a  monarchy  became  the 
sovereign  citizens  of  a  republic  of  their  own  creation,  did  not 
essentially  change  popular  sentiment  in  regard  to  excises  gene- 
rally ;  and  it  was  to  be  feared  that  in  localities  on  which  the 
burden  of  taxation  must  fall  with  particular  weight,  the  dissatis- 
faction naturally  aroused  by  measures  militating  against  self- 
interest,  would   occasion   some   difficulties   in    collecting   the 
taxes.     There  was  all  the  more  reason  for  this  apprehension 
as  to  Pennsylvania,  seeing  that  the  Legislature  of  that  State 
had,  with  a  large  majority,*  passed  the  above-mentioned  reso- 
lution, characterizing  the   excise  law,  before   its  passage,  as 
having  a  tendency  to  destroy  the  rights  and  liberties  of  their 
constituents.     And  this  in  the  face  of  the  fact,  that  at  various 
times  during  the  Revolutionary  war  and  the  period  succeeding 
it  and  preceding  the  permanent  estabKsliment  of  the  National 
Government,  excise  taxes  had  been  levied  on  distilled  spirits 
by  the  local  authorities  of  Pennsylvania — taxes  which,  it  must 
be  added,  however,  the  distillers  displayed  little  alacrity  in 
paying.     That  Pennsylvania  was  from  the  beginning,  and  for 
a  number  of  years  remained,  the  most  dangerous  seat  of  the 
opposition  against  the  new  law,  will  be  readily  understood  in  the 
light  of  the  description  before  given  of  the  state  of  the  liquor 
traffic.     So  general  had  the  manufacture  of  ardent  spirits  be- 
come in  Pennsylvania,  that  as  early  as  1779  the  Assembly 
enacted  a  law  to  prevent  distillation  of  all  kinds  of  grain  or 
meal,  being  induced   to  this  act  by   the  threatening  aspect, 
both  moral  and  economic,  of  a  consumption  of  ardent  spirits 
almost  fabulous.     "  In  many  parts  of  the  country,"  says  Find- 
ley  in  his  History  of  the  Insurrection,  "  you  could  scarcely 
get  out  of  sight  of  the  smoke  of  stiU-houses."     Famine  and 
demoralization  of  the  people  were  regarded  as  the  inevitable 
results  of  such  a  state  of  affairs.     In  October,  1779,  this  pro- 


The  vote  on  the  passage  of  the  resolution  stood  :  Yeas,  40  ;  Nays,  16. 


58  LIQTJOB    LAWS    OF    THE    UNITED    STATES. 

liibitorj  law  was  repealed  and  permission  granted  to  distill  rye 
and  barley  ;  an  excise  tax  being  then  again  levied  on  every  gal- 
lon of  ardent  spirits  distilled  within  the  State.  But  neither 
law  seems  to  have  had  the  slightest  effect  upon  the  extent  of 
the  manufacture  of  distilled  spirits.  After  their  passage,  as 
before,  nearly  every  farmer  distilled  his  own  whiskey  and 
deemed  it  his  inalienable  right  to  evade  the  tax,  and  resist  the 
collector  whenever  a  favorable  opportunity  presented  itself  for 
doing  so.  Open  violence  was  resorted  to  in  few  isolated  cases 
only,  and  in  these,  though  involving  no  fatal  casualities,  the 
courts  of  law  speedily  meted  out  justice  to  the  rioters. 

In  view  of  the  state  of  the  public  mind  on  the  subject,  and 
the  condition  of  things  generally,  the  Pennsylvania  Legislature 
must  at  least  be  held  accountable  for  having  added  fuel  to  the 
fire,  by  the  adoption  of  a  resolution  which  every  one  of  their 
constituents  could,  by  a  slight  stretch  of  conscience,  construe 
as  a  justification  for  whatever  means  he  chose  to  employ  in 
the  defence  of  rights  so  wantonly  (!)  violated. 

This  resolution  reads  as  follows : 

The  Legislature  of  this  Commonwealth  ever  attentive  to  the  rights  and 
liberties  of  their  constituents,  and  conceiving  it  a  duty  incumbent  on  them 
to  express  their  sentiments  on  such  matters  of  a  public  nature  as  in  their 
opinion  have  a  tendency  to  destroy  those  rights,  agree  to  the  following  reso- 
lutions, namely  ; 

Resolved,  That  in  the  proceedings  on  the  part  of  the  United  States, 
tending  to  the  collection  of  a  revenue  by  means  of  excise  established  upon 
principles  subversive  of  the  peace,  liberty,  and  rights  of  the  citizen,  ought 
to  attract  the  attention  of  this  House. 

Resolved,  That  no  public  exigency  within  the  knowledge  or  contempla- 
tion of  this  House,  can,  in  their  opinion,  warrant  the  adoption  of  any  species 
of  taxation  which  shall  violate  those  rights  which  are  the  basis  of  our 
government,  and  thereby  exhibit  the  singular  spectacle  of  a  nation  resolutely 
opposing  the  oppression  of  others  in  order  to  enslave  itself. 

Resolved,  That  these  sentiments  be  communicated  to  the  Senators  repre- 
senting the  State  of  Pennsylvania  in  the  Senate  of  the  United  States,  with 


CHAPTER  ni.  59 

the  hope  that  they  will  oppose  every  part  of  the  Excise  Bill  now  before 
Congress,  which  shall  militate  against  the  just  rights  and  liberties  of  the 
people.* 

Gallatin  (subsequently  Secretary  of  the  Treasury),  Find- 
ley  and  others,  who  are  said  to  have  either  openly  fomented  or 
secretly  abetted  the  violent  opposition  to  the  law,  endeavored 
to  defend  the  resolution  on  the  ground  that  it  was  the  right  of 
every  State  Legislature  to  express  their  opinions  as  to  proposed 
or  adopted  measures  of  the  Federal  government.  This  right 
was  not  seriously  questioned  at  all ;  it  was  undoubtedly  the 
right  of  the  Pennsylvania  Legislature  to  give  expression  to 
their  views,  but  it  was  wrong  under  then  existing  circumstances 
to  exercise  this  right — wrong  from  a  patriotic  point  of  view  to 
do  aught  which,  by  shaking  the  confidence  scarcely  re-esta- 
blished by  dint  of  heroic  efibrts  on  the  part  of  Washington 
and  his  cabinet,  could  not  but  emperil  the  welfare  of  the  com- 
monwealth. That  the  majority  favoring  the  adoption  of  the 
resolution  lacked  that  degree  of  foresight  which  would  have 
enabled  them  to  estimate  beforehand  the  dangers  their  conduct 
invited,  may  readily  be  assumed  without  further  proof;  but 
history  points  to  a  clique  of  politicians  who  instigated  this 
short-sighted,  yet  well-meaning  legislative  majority,  and  did 
so  with  the  determination  of  bringing  about  evils  they  had 
persistently  presaged,  and  ardently  wished  for.  In  them,  the 
act  was  much  worse  than  wrong.  In  the  subsequent  development 
of  the  insurrectionary  spirit  incited  by  them,  they  buttoo  palpa- 
bly evinced  their  malevolence,  showing  that  what  they  alleged 
to  have  been  the  outcome  of  their  sympathy  with,  and  desire 
of  expressing,  a  popular  sentiment,  was,  in  verity,  an  artifice 
designed  to  cover  their  enmity  to  the  National  Administration, 
an  enmity  which  soon  stalked  forth  boldly,  making  Hamilton 
its  central  point  of  attack.     And  this  inimical  attitude  was 


*  Journal  of  the  Legislature,  1791,  p.  110. 


60  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

neither  confined  to  the  one  locality  nor  to  the  one  cause  here 
in  question.  The  bitter  struggle  over  the  Assumption  Bill 
only  marks  the  beginning  of  a  relentless  political  warfare 
against  the  Administration,  particularly  against  Hamilton's 
fiscal  system.  The  Virginia  Assembly  had  passed  a  resolution 
denouncing  assumption  "  as  repugnant  to  the  Constitution, 
giving  to  it  the  exercise  of  a  power  not  granted  to  the  General 
Government ;  a  measure  particularly  injurious  to  the  interests 
of  Virginia,  an  act  impolitic,  unjust,  odious  and  defoi'med  ; 
one  which  republican  policy  could  scarcely  have  suggested  as 
intended  to  concentrate  and  perpetuate  large  moneyed  interests, 
which  would  produce  a  prostration  of  agriculture  at  the  feet 
of  commerce,  or  a  change  in  the  present  form  of  the  Federal 
government,  fatal  to  American  liberty."*  In  North  Carolina 
and  Maryland  a  similar  spirit  had  been  aroused  and  found  vent 
in  resolutions  antagonistic  to  Hamilton's  financial  schemes. 
The  secret  enemies  of  Washington,  and  open  adversaries  of 
Hamilton,  spread  the  most  astounding  reports  as  to  the  inten- 
tions and  aims  of  the  Administration.  Washington,  too  popu- 
lar and  too  highly  esteemed  to  be  openly  charged  with  unpa- 
triotic motives,  was  represented  as  being  the  tool  of  a  party 
headed  by  Hamilton  and  Adams,  whose  policy,  it  was  alleged, 
tended  to  pave  the  way  for  a  change  of  government  from  a 
republican  to  a  monarchical  form.  Although  as  yet  little  cre- 
dence was  accorded  to  such  reports  outside  of  the  disaffected 
localities,  it  was  evident  that  the  Administration  must  be  pre- 
pared to  meet  an  opposition  as  virulent  as  it  was,  in  some 
respects,  unjustified.  The  formation  of  the  minority  into  a 
compact  political  party  had  begun,  and  the  leaders  were  cast- 
ing about  for  material  wherewith  to  erect  a  distinctive  politi- 


*  "  This  is  the  first  symptom  of  a  spirit,"  was  the  language  of  Ham- 
ilton to  the  Chief  Justice,"  which  must  either  be  killed,  or  will  kill  the  Con- 
stitution of  the  United  States."  (History  of  the  Republic,  by  J.  C.  Hamil- 
ton.    Vol.  IV.,  p.  479. 


CHAPTER   III.  61 

cal  basis.  Apprehensions  on  that  account  were  all  the  more 
warranted  as  the  least  placable  of  Hamilton's  opponents,  Jef- 
ferson, held  the  foremost  administrative  office  under  Washing- 
ton, and  was,  indeed,  the  most  gifted,  as  he  surely  was  the 
noblest  and  most  patriotic  of  the  leaders  of  the  opposition. 
It  would  seem,  as  if  his  ardent  love  of  liberty,  partaking  some- 
what of  the  character  of  French  republicanism  of  those  days, 
rendered  him  unduly  suspicious  of  his  surroundings,  and, 
clouding  his  usually  bright  intellectual  vision,  made  him  see 
dastardly  schemes  for  the  destruction  of  the  American  Repub- 
lic, where,  in  truth,  there  was  but  the  most  self-sacrificing 
devotion  to  the  country's  welfare. 

"  Hardly  Avas  Jefferson  warm  in  his  new  office  as  a  member 
of  the  cabinet,"  says  Hildreth,*  "when  he  appears  to  have 
adopted  the  idea,  founded,  it  would  seem,  on  casual  expressions 
of  speculative  opinion  dropped  in  the  freedom  of  unreserved 
social  intercourse,  that  a  conspiracy  was  on  foot,  headed  by 
Adams  and  Hamilton,  to  overturn  the  republican  institutions  of 
the  United  States,  and  to  substitute  a  monarchy  and  an  aristo- 
cracy in  the  place,  the  monarchy  being  principally  patronized 
by  Hamilton,  and  the  aristocracy  by  Adams,  and  both  being 
inclined  to  give  the  wealthier  and  more  intelligent  few  a  very 
disproportionate  influence  in  the  government.  Though  a  great 
advocate  for  toleration  and  liberality  in  matters  of  religion,  in 
politics  Jefferson  was  a  consummate  bigot.  One  single  specu- 
lative error  outweighed,  in  his  estimation,  the  most  devoted 
patriotism,  the  most  unquestionable  public  service."  Professor 
V.  Hoist,  writing  of  the  compromise  by  which  the  Assumption 
Bill  was  passed,  an  expedient  which  he  characterizes  as  the  first 
unmistakable  indication  of  a  geographical  party  division, 
asserts,  as  do  nearly  all  competent  historians,  that  "  Jefferson, 
when  he  believed  there   was  no  danger  that  his  words  would 


*  History  of  the  United  States,  Vol.  iv.,  p.  297. 


62  LIQUOB    LAWS    OF    THE    UNITED    STATES. 

"be  whispered  in  wider  circles,  gave  full  vent  to  his  secret  ani- 
mosity against  Washington."  *  It  would  surelj  be  a  venture- 
some undertaking,  to  establish  any  direct  connection  between 
the  revolt  in  Pennsylvania  and  the  animosity  of  Jefferson 
against  the  Administration,  although  Jefferson  styled  the  excise 
duty  an  "  infernal  error,"  and  held  Hamilton's  system  to  be 
founded  on  "  principles  inimical  to  liberty,"  and  calculated  to 
undermine  the  Constitution.  Yet  it  must  be  conceded,  that 
his  antagonism  and  the  manner  in  which  it  was  manifested, 
strengthened  the  opposition  generally,  and  gave  nourishment, 
perhaps  against  his  will  and  wish,  to  the  insurrectionary  spirit 
of  the  people  of  Western  Pennsylvania.  Under  such  circum- 
stances the  solidification  of  the  opposition  party  progressed 
rapidly,  and  the  seed  of  discontent  was  being  sown  broadcast, 
even  while  the  measures  proposed  and  carried  out  by  the 
executive  departments  were  bringing  forth  blessings  which,  to 
use  Washington's  words,  three  years  ago  it  would  have  been 
madness  to  have  foretold.  It  was  necessary  to  digress  thus 
briefly  from  the  subject  in  hand,  to  show  that  the  discontent 
at  the  excise,  though  springing,  as  has  been  shown,  from  pre- 
judices and  preconceived  ideas  alike  powerful  and  unreasonable, 
and  especially  dangerous  for  being  the  one  and  the  other, 
would  not  seriously  have  disturbed  the  tranquility  of  the  na- 
tion, particularly  under  the  beneficent  influences  of  a  prosper- 
ity almost  miraculously  restored,  had  it  not  been  indirectly 
nurtured  by  men  of  eminence  and  popular  power,  and  used  by 
others  to  serve  a  purpose  foreign  to  its  original  ends  and 
objects. 

The  spirit  of  resistance  was  most  violently  manifested  in 
the  western  counties  of  Pennsylvania,  because,  as  Findley — 
one  of  its  prime  instigators — says,  the  people  of  that  locality 
anticipated  peculiar  hardships  from  the  excise.  "  Without  money 


*  Pol.  &  Const.  Hist.     Vol.  I. ,  \^. 


CHAPTER   m.  ^^ 


or  the  means  of  procuring  it,  and  consuming  their  whiskey 
only  in  their  families  or  using  it  as  an  article  of  barter,  which 
though  in  some  respects  answered  the  place  of  money,  yet 
would  not  be  received  in  pay  for  tlie  excise  tax,  they  thought 
it  hard  to  pay  as  much  tax  on  what  sold  with  them  but  at  from 
two  shillings  to  two  shillings  and  six  pence,  as  they  did  where 
it  brought  double  that  price."*     From  this  it  might  be  inferred 
that  a  modification  of  the  law  would  have  allayed  the  excite- 
ment prevalent  among  the  inhabitants  of  those  localities ;  but 
the  truth  is,  that  Findley  himself,  who  was  afterward  elected 
to  represent  his  State  in  the  second  Congress,  and  his  coadjutors 
did  everything  in  their  power  to  prevent  a  pacific  solution  of 
the  question.  '^  While  a  member  of  the  Pennsylvania  Legisla- 
ture he  intimated,  in  an  entirely  unguarded  manner,  that  no 
taxes  should  be  paid  at  all,  and  the  excise  officers  made  to  feel 
the  full  weight  of  popular  indignation.     And  the  latter  recom- 
mendation was  by  no  means  a  figurative  phrase.     The  predom- 
inant opinion  among  the  people  of  those  counties,  an  opinion, 
stimulated  by  men  of  Findley's  calibre,  was,  that  to  restrict 
distillation  in  any  manner,  however  legitimate,  or  to  impose 
taxes  upon  what  they  deemed  a  necessary  of  life,  must  be 
regarded  as  a  violation  of  "natural  rights  "—a  term  used  in 
the  petition    of   the   citizens  of  Westmoreland.      Yet  even 
this  disposition,  dangerous  and  deplorable  under  any  circum- 
tances,  would  not  of  itself  have  brought  about  a  conflict  of  the 
people  with  the  government ;  it  required  the  devices  and  arti- 
fices of  the  demagogue,  to  fan  the  embers  into  flame  ;  f  and 
the  demagogue  was  industriously  at  work. 

*  Findley's  History  of  the  Insurrection,  p.  41. 

f  Washington  writing  of  his  tour  through  the  Southern  States,  in  some 
of  which  sentiments  prevailed  similar  to  those  entertained  in  Western  Penn- 
sylvania, states  that  he  found  everywhere  a  ready  acquiescence  to  the  laws 
made  under  the  new  government.  "  At  the  time,"  he  wrote,  "  of  passing  a 
law  imposing  a  duty  on  home-made  spirits,  it  was  vehemently  affirmed  by 


64  LIQUOK    LAWS    OF   THE   UNITED   STATES. 

As  early  as  July  27,  1791,  hence  a  few  weeks  after  the 
beginning  of  the  operation  of  the  law,  but  ere  yet  the  first 
excise  office  had  been  opened  in  any  of  the  western  counties 
of  Pennsylvania,  the  movement  for  an  open  opposition  was 
inaugurated.     On  the  day  mentioned,  an  indignation  meeting 
was  held  at  Ked  Stone  Old  Fort  (now  Brownsville),  attended  by 
delegates  from  the  counties  of  Westmoreland,  Allegany,  Wash- 
ington and  Fayette.     Prominent  citizens  were  present  at  this 
meeting,  among  them  Albert  Gallatin.    The  resolutions  adopted 
characterized  the  act  of  Congress  as  "  unequal  in  its  operation, 
immoral  in  its  effects,  dangerous  to  liberty,  and  especially  op- 
pressive to  the  inhabitants  of  the  Western  country."     A  tho- 
rough organization  of  all  citizens   opposed  to   the  law  was 
recommended,  and  preliminary  arrangements  were  made  for 
organizing  county  committees,  who  were  either  to  attend  in 
corjjore,  or  be  represented  at  a  general  convention  to  assemble 
at  Pittsburgh  on  the  7th   of  September,   for  the  purpose  of 
planning  concerted   action.      Previous  to  the  latter  date  the 
committee  for  Washington  county — the  seat  of  the  greatest 
turbulence — adopted  resolutions  declaring  that  "  any  person 
who  had  accepted,  or  may  accept  an  office  under  Congress,  in 
order  to  carry  the  law  into  effect,  should  be  considered  as  ini- 
mical to  the  interests  of  the  country,"  and  urging  upon  the 
citizens  of  Washington  county  the  expediency   of  "  treating 
every  person  who  had  accepted  such  office,  or  might  thereafter 
accept,  with  contempt,  and  absolutely  to  refuse  all  kind  of  com- 
munication or  intercourse  with  the  officers  and  withold  from 

many,  that  sucli  a  law  could  have  never  been  executed  in  the  Southern 
States,  particularly  in  Virginia  and  North  Carolina.  I  took  some  pains  to 
obtain  information  on  this  point  and  there  remains  no  doubt  that  the  law- 
will  be  carried  into  effect,  not  only  without  opposition,  but  vrith  general 
approbation,  in  those  very  parts  where  it  was  foretold  that  it  would  never 
be  submitted  to  by  any  one.  It  is  possible,  however,  and  perhaps  not  impro- 
bable, that  some  demagogues  may  start  up  and  prodiice  and  get  signed  some 
resolutions  declaratory  of  their  disapprobation  of  the  measure. 


CHAPTER   III.  65 

them  all  aid,  support  or  comfort."  *  The  f^encral  meeting  held 
at  Pittsburgh  (September  7,  1791)  entered  into  resolutions 
more  comprehensive  in  their  objects  and  less  inflammatory  in 
their  tendency,  than  those  which  had  before  passed  the  meet- 
ing in  "Washington.  Their  resolutions  contained  severe  cen- 
sures, not  only  on  the  lavr  which  was  the  immediate  subject  of 
objection,  but  upon  what  they  termed  the  exorbitant  salaries 
of  officers,  the  unreasonable  interest  of  the  public  debt,  the 
want  of  discrimination  between  original  holders  and  trans- 
ferees, and  the  institution  of  a  national  bank.  A  representa- 
tion to  Congress,  and  a  remonstrance  to  the  Legislature  of 
Pennsylvania  against  the  law  more  particularly  complained  of, 
were  prepared  and  published. 

On  the  day  before  the  meeting  the  opposition  broke  out  in 
an  act  of  violence  upon  the  person  and  property  of  Robert 
Johnson,  collector  of  revenues  for  Allegany  and  Washington. 
Waylaid  and  seized  by  a  masked  party,  at  a  place  on  Pidgeon 
Creek,  in  Washington  County,  he  was  robbed  of  his  horse, 
tarred  and  feathered,  clipped  of  his  hair,  and  left  in  that  con- 
dition to  make  his  way  home  as  best  he  could.  Having 
recognized  some  of  his  assailants  in  spite  of  their  masks,  he 
procured  warrants  for  their  arrest.  The  serving  of  the  pro- 
cesses was  confided  l)y  marshal  Clement  Piddle  to  liis  deputy, 
Joseph  Fox,  who,  going  into  Allegany,  in  the  month  of  Octo- 
ber, to  discharge  this  duty,  took  alarm  at  the  threatening  aspect 
of  things,  and  fearing  for  the  safety  of  his  person,  resorted  to 
what  Hamilton  disapprovingly  styled  the  injudicious  and  fruit- 
less expedient  of  sending  them  by  private  messenger  under 
cover.f     The  deputy's  report  to  his  superior  officer  contained 

*  The  description  of  the  disturbances  from  this  meeting  onward  is 
almost  literally  talccn  from  Hamilton's  "  Report  on  the  opposition  to  internal 
duties."     Hamilton's  Works,  Vol.  iv.,  578. 

f  Findley,  who  avidiously  seized  every  incident  by  which  the  insurrec- 
tionary movement  could  in  any  degree   be  justified,  criticises  this   unwise 


66  LIQUOK    LAWS    OF   THE    UNITED   STATES. 

many  particulars  evincing  a  considerable  fermentation  in  the 
locality  in  question,  and  inducing  the  belief  that  the  processes 
could  not  with  safety  have  been  executed.  Indeed,  the  person 
who  had  been  sent  with  the  processes  was  seized,  robbed, 
whipped,  tarred  and  feathered,  blindfolded,  and  tied  in  the 
woods,  in  which  condition  he  remained  five  hours. 

Other  outrages  of  a  similar  character  soon  followed.  Wells, 
collector  of  revenue  for  Westmoreland  &  Fayette,  was  ill- 
treated  at  Greensbui-gh  and  Union  Town.  About  the  same 
time  a  demented  person  of  the  name  of  Wilson,  a  stranger  in 
those  parts,  laboring  under  the  unfortunate  delusion  that  he 
was  officially  connected  with  the  revenue  service  made  inqui- 
ries in  reference  to  stills,  pretending  that  he  was  instructed  to 
report  to  Congress  the  names  of  the  distillers  who  had  entered 
their  places  of  business  according  to  law.  Pursued  and 
captured  by  a  party  of  masked  regulators,  the  poor  idiot  was 
dragged  to  a  blacksmith's  shop,  a  distance  of  five  miles  from 
the  place  of  his  capture,  stripped  of  his  clothing,  repeatedly 
branded  with  hot  irons,  tarred  and  feathered,  and  then  turned 


course  in  these  words  :  "  If  the  inspector  could  have  contrived  a  surer 
method  to  degrade  the  government  in  the  esteem  of  the  rioters,  and  invite 
insults,  it  is  beyond  my  comprehension  ;  and  unhappily  the  poor  man,  who 
was  ignorant  of  what  he  was  doing,  was  the  victim  of  this  injudicious  plan. 
What  better  could  the  inspector  expect  ?  If  the  people  were  well  disposed, 
where  the  process  was  to  be  served,  why  discourage  the  marshal  from  going 
forward  ?  If  they  were  not  well  disposed,  why  send  a  poor  creature  who, 
not  knowing  what  he  delivered,  could  not  give  testimony  of  his  having 
servad  the  processes  ?"  [Findley  either  unconciously  or  wilfully  covfoxuids  the 
story  oftheidiot,  named  Wilson, /witJi  that  of  the  private  messenger  sent  hy  Fox.'] 
"  The  authority  of  a  commission  from  government,  and  the  respectability 
attached  thereby  to  the  person  that  bears  it,  generally  procures  a  degree  of 
reverence  to  an  officer  of  justice.  The  sheriff  or  constable  will  be  respected 
where  the  officious  bum  vnll  probably  be  flogged. "  [History  of  the  Insurrec- 
tion, page  69.]  Findley  seems  to  forget  that  collector  Johnson  and  other 
excise  officers  learned  to  their  sorrow  that  their  commission  secured  them  no 
sort  of  reverence. 


CHAPTER    m. 


67 


loose  in  this  pitiable  state.     These  outrages  were  not  confined 
to  othcers  of  the  revenue,  however ;  everybody  who  ventured 
to  express  an  opinion  favorable  to  the  law  was  treated  in  like 
manner,  as  was  shown  in  the  case   of  a  man  of  the  name  of 
Eoseberry,  who  was  tarred  and  feathered  for  remarking  that 
the  inhabitants  of  Washington  county  could  not  reasonably 
expect  protection  from  a  government  whose  laws  they  so  stren- 
uously opposed.     Persons  who  had   been  summoned  as  wit- 
nesses against  the  rioters  in  the  case  of  Wilson  were  seized 
and  carried  off,  in  order  to  prevent  their  giving  testimony  in 
court,  and  all  well-disposed  citizens  were  systematically  terror- 
ized.    A  recent  writer  terms  these  outrages  "  practical  jokes," 
and  seeks  to  exonerate  the  prominent  citizens  and  oflace-holders, 
who  had  partaken  in  the  meetings  before-described,  from  the 
reproach  of  having  sanctioned  or  even  tacitly  approved  any  acts 
of  violence.     This  is  evidently  an  opinion  based  on  Findley's 
description   of  the  troubles  ;   but  even   the  most  charitably 
disposed   will  scarcely  deem  it   tenable,  in  view  of  the  un- 
deniable fact  that  open  violence  was  simply  the  natural  con- 
sequence  of  the  spirit    pervading    some   of    the  resolutions 
adopted  at  those  meeting ;  that  nothing  was  done  to  allay  the 
excitement  by  those  who  had  fomented  it,  and,  finally,  that  the 
law  could  not  be  executed  in  those  counties,  and  remained  a 
dead  letter  for  over  three  years. 

Hamilton  explains  the  comparatively  passive  attitude 
maintained  l)y  tlie  National  Government  subsequent  to  these 
outrages  and  before  tlie  assembling  of  Congress,  in  these  words  : 

"  It  seemed  highly  probable,  from  the  issue  of  the  experi- 
ment which  had  been  made,  that  the  ordinary  course  of 
civil  process  would  be  inefiectual  for  enforcing  the  exe- 
cution of  the  law  in  the  scene  in  question,  and  that  a  per- 
severance in  this  course  might  lead  to  a  serious  concussion. 
The  law  itself  was  still  in  the  infancy  of  its  operation. 


68  LIQUOR    LAWS   OF    THE    UNITED    STATES. 

and  far  from  established  in  other  important  portions  of 
the  Union.  Prejudices  against  it  had  been  industriously 
disseminated,  misrepresentations  diffused,  misconceptions 
fostered.  The  Legislature  of  the  United  States  had  not 
jet  organized  the  means  by  which  the  Executive  could 
come  in  aid  of  the  Judiciary,  when  found  incompetent  to 
the  execution  of  the  laws.  If  neither  of  those  impedi- 
ments to  a  decisive  exertion  had  existed,  it  was  desirable, 
especially  in  a  republican  government,  to  avoid  what  is  in 
such  cases  the  ultimate  resort,  till  all  the  milder  means 
had  been  tried  without  success.  It  was  deemed  wise  to 
forbear  urging  harsh  measures,  till  further  reflection  and 
experience  had  corrected  false  impressions,  and  till  the 
National  Legislature  had  an  opportunity  to  modify  the 
law." 

Before  considering  the  propositions  submitted  to  Congress 
in  Hamilton's  report  on  the  subject  of  excises,  it  is  necessary 
to  make  mention  of  two  other  reports,  closely  related  to  the 
liquor  traffic;  the  one  is  Hamilton's  justly  renowned  report  on 
manufactures,*  the  other  his  plan  for  raising  additional  reve- 
nue for  the  protection  of  the  Western  frontiers,t  submitted 
December  5,  1791,  and  March  17,  1792,  respectively. 

The  former  report,  demonstrating  the  expediency  of  en- 
couraging domestic  manufactures,  as  a  means  of  creating  a 
home  market  for  the  surplus  of  agricultural  produce,  to  which 
some  of  the  principal  foreign  markets  were  closed  at  the  time, 
includes,  among  the  manufactures  to  be  encouraged  and  pro- 
tected, breweries  and  distilleries.  It  must  have  been  remarked 
that  all  utterances  heretofore  quoted  revealed  a  strong  inclina- 
tion to  protect  and  encourage  at  least  those  manufactures 
which,  to  use  an  oft-repeated  phrase,  were  generally  regarded 
as  handmaids  to  agriculture.    Whatever  opposition  was  brought 


*  American  State  Papers,  (Finance),  Vol.  I.,  p.  123.     f  Ibid.,  p.  159. 


CHAPTER   ni. 


69 


to  bear  against  this  inclination  so  far  as  the  two  beforenamed 
manufactures  from  grain  were  concerned,  was  directed  against 
the  manner  of  doing  the  thing.  In  this  respect,  however,  the 
more  recent  laws,  and  the  discussions  had  thereon,  show  a 
marked  change  of  opinion.  As  to  ardent  spirits  it  was  now 
pretty  generally  admitted  that  it  would  be  wise— since  they 
must,  from  their  great  consumption,  form  one  of  the  princi- 
pal sources  of  revenue— to  give  preference  to  the  domestic 
product  over  the  foreign  article.  As  to  malt  liquors  the  opin- 
ion predominated,  and  very  decidedly  too,  that,  equally 
profitable  to  agriculture,  they  should  be  fostered  as  a  means  of 
diminishing  the  use  of  the  former  liquors  and  thus  improve 
the  moral  status  of  the  people.  Hamilton's  report  is  conceived 
entirely  in  this  spirit.     It  reads : 

"  Manufactures  of  the  several  species  of  grain  have  a  title 
to  peculiar   favor :  not  only  because  they  are  most  of  them 
immediately  connected  with  the  subsistence  of  the  citizens, 
but  because  they  enlarge  the  demand  for  the  most  precious 
products   of  the   soil.     Ardent  spirits  and  malt  liquors  are, 
next  to  flour,  the  two  principal  manufactures  of  grain.     The 
first  has  made  a  very  extensive,  and  the  last  a  considerable 
progress  in  the  United  States.     In  respect  to  both  an  exclu- 
sive possession  of  the  home  market  ought  to  be  secured  to  the 
domestic  manufacturers,  as  fast  as  circumstances  will  admit. 
Nothing  is  more   practicable,   and   nothing    more   desirable. 
The  existing  laws  of   the   United   States   have   done    much 
towards  attaining  this  valuable  object.     But  some  additions 
to  the  present  duties  on   foreign  malt   liquors',  and  perhaps 
an   abatement  of   those   on   home-made   spirits,  would  more 
efi'ectually  secure  it ;  and  there  does  not  occur  any  weighty 
objection  to  either.     An  augmentation  of  the  duties  on  im- 
ported spirits  would  favor  as  well  the  distillation  of  spirits 
from  molasses  as  that  from  grain.     And  to  secure  to  the  na- 
tion the  benefit  of  a  manufacture,  even  of  foreign  materials,  is 


70  LIQUOK    LAWS    OF   THE    UNITED    STATES. 

always  of  great,  though  perhaps  of  secondary  importance.  A 
strong  impression  prevails  in  the  minds  of  those  concerned  in 
distilleries  (including,  too,  the  most  candid  and  enlightened), 
that  greater  differences  in  the  rates  of  duty  on  foreign  and 
domestic  spirits  are  necessary,  completely  to  secure  the  suc- 
cessful manufacture  of  the  latter  ;  and  there  are  facts  which 
entitle  this  impression  to  attention. 

"  It  is  known,  that  the  price  of  molasses  for  some  years 
past  has  been  rising  in  the  West  India  markets,  owing  partly 
to  a  competition  which  did  not  formerly  exist,  and  partly  to 
an  extension  of  demand  in  this  country ;  and  it  is  evident 
that  the  late  disturbances  in  those  islands,  from  which  we 
draw  our  principal  supply,  must  so  far  interfere  with  the  pro- 
duction of  the  article  as  to  occasion  a  material  enhancement 
of  the  price.  The  destruction  and  devastation  attendant 
on  the  insurrection  in  Hispaniola,  in  particular,  must  not 
only  contribute  very  much  to  that  effect,  but  may  be  expected 
to  give  it  some  duration.  These  circumstances,  and  the  duty 
of  three  cents  per  gallon  on  molasses,  may  render  it  difficult 
for  the  distillers  of  that  material  to  maintain,  with  adequate 
profit,  a  competition  with  the  rum  brought  from  the  "West 
Indies,  the  quality  of  which  is  so  considerably  superior.  The 
consumption  of  Geneva,  or  gin,  in  this  country  is  extensive. 
It  is  not  long  since  distilleries  of  it  have  grown  up  among  us  to 
any  importance.  They  are  now  becoming  of  consequence  ; 
but  being  still  in  their  infancy  they  require  protection.  It  is 
represented  that  the  price  of  some  of  the  materials  is  greater 
here  than  in  Holland,  from  which  place  large  quantities  are 
brought — the  price  of  labor  considerably  greater — the  capitals 
engaged  in  the  business  there  much  larger  than  in  those  which 
are  employed  here — the  rate  of  profits,  at  Avhich  the  under- 
takers can  afford  to  carry  it  on,  much  less — the  prejudices  in 
favor  of  imported  gin,  strong.  These  circumstances  are 
alleged  to  outweigh   the  charges,  which  attend  the  bringing 


CHAPTER   m. 


71 


of  the  article  from  Europe  to  tlie  United  States  and  the  pres- 
ent difference  of  duty,  so  as  to  obstruct  the  prosecution  of 
the  manufacture  with  due  advantage.  Experiment  could 
alone  decide  with  certainty  the  justness  of  the  suggestions 
which  are  made  ;  but  in  relation  to  branches  of  manufac- 
ture so  important,  it  would  seem  inexpedient  to  hazard  an 
unfavorable  issue  and  better  to  err  on  the  side  of  too  great, 
than  of  too  small  a  difference  in  the  particular  in  question. 

"  It  is  therefore  submitted,  that  an  addition  of  two  cents 
per  gallon  to  the  duty  on  imported  spirits  of  the  first-class  of 
proof,  with  a  proportionable  increase  on  those  of  higher  proof, 
and  that  a  deduction  of  one  cent  per  gallon  be  made  from 
the  duty  on  spirits  distilled  within  the  United  States,  begin- 
ning with  the  first-class  of  proof  and  a  proportionable  de- 
duction from  the  duty  on  those  of  higher  proof.  It  is  ascer- 
tained, that  by  far  the  greater  part  of  the  malt  liquors  con- 
sumed in  the  United  States  are  products  of  domestic  breweries. 
It  is  desirable,  and,  in  all  likelihood,  attainable,  that  the  whole 
consumption  should  be  supplied  by  ourselves.  The  malt 
liquors  made  at  home,  though  inferior  to  the  best,  are  equal 
to  a  great  part  of  those  which  have  been  usually  imported. 
The  progress  already  made  is  an  earnest  of  what  may  be  ac- 
complished. The  growing  competition  is  an  assurance  of 
improvement.  This  will  be  accelerated  by  measures  tending 
to  invite  a  greater  capital  into  this  channel  of  employ- 
ment. 

"  To  render  encouragement  of  domestic  breweries  decisive, 
it  may  be  advisable  to  substitute  for  the  present  rates  of  duty 
eight  cents  per  gallon  generally,  and  it  will  deserve  to  be 
considered  as  a  guard  against  evasions,  whether  there  ought 
not  to  be  a  prohibition  of  their  importation,  except  in  casks  of 
considerable  capacity.  It  is  to  be  hoped  that  such  a  duty 
would  banish  from  the  market  foreign  malt  liquors  of  inferior 
quality;  and  that  the  best  kind  only  would  continue  to  be 


72  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

imported,  till  it  should  be  supplanted  by  the  efforts  of  equal 
skill  and  care  at  home. 

"  Till  that  period,  the  importation  so  qualified,  would  be 
a  useful  stimulus  to  improvement ;  and  in  the  meantime 
the  payment  of  the  increased  price,  for  the  enjoyment  of  a 
luxury,  in  oixier  to  the  encouragement  of  a  most  useful  branch 
of  domestic  industry,  could  not  reasonably  be  deemed  a 
hardship. 

"  If  anything  in  addition  is  judged  eligible,  the  most 
proper  would  appear  to  be  a  direct  bounty  on  window  glass 
and  black  bottles.  The  first  recommends  itself  as  an  object 
of  general  convenience ;  the  last  adds  to  that  character  the 
circumstance  of  being  an  important  item  in  breweries.  A 
complaint  is  made  of  great  deficiency  in  this  respect."  * 

The  war  carried  on  against  hostile  tribes  of  aborigines  on 
the  then  western  frontiers  of  the  Union,  helped  to  realize, 
sooner  perhaps  than  would  otherwise  have  been  the  case,  the 
intentions  of  Hamilton  as  to  the  protection  of  distilled,  and 
the  encouragement  of  malt  liquors.  The  defeat  of  St.  Clair 
by  the  hostile  Indians  and  the  insufficiency  of  martial  means 
for  the  protection  of  the  western  frontiers  necessitated  the 
augmentation  of  the  military  establishment  of  the  Union. 
A  bill  was  accordingly  introduced  into  Congress  (January  21, 
1792),  and  passed,  embodying  the  main  features  of  a  report  by 


*  The  lack  of  black  quart  bottles  was  at  that  time  deemed  an  impedi- 
ment to  the  brewing  industry,  and  it  was  for  this  reason  that  this  article 
was  exempt  from  the  ten  per  cent,  duty  imposed,  by  previous  acts,  upon 
glass  ware.  Interesting  in  this  connection  is  the  fact,  that  on  June  2,  1 790, 
a  Congressional  committee  reported  favorably  on  the  petition  of  John  F. 
Amelung,  who,  having  established  a  large  glass  manufactory  in  Frederick 
County  Md.,  sustained  great  losses  by  fire,  and  hence  asked  Congress  for  a 
loan  of  money  in  order  to  enable  him  to  continue  operation.  The  committee 
recommended,  that  a  sum  not  exceeding  $8,000.00  be  advanced  by  the  Treas- 
ury, on  the  ground  that  an  industry  so  important  to  the  United  States 
deserved  help.     (Am.  State  Papers,  Finance,  Vol.  i,  p.  63.) 


CHAPTER   III.  73 

the  War  Department,  to  the  effect  that  the  two  enrolled  regi- 
ments, as  well  as  the  artillery  battalion  be  raised  to  their  full 
complement — the  strength  of  a  regiment  on  war  footini;"  being 
nine  hundred  and  sixty  men — and  that  three  new  regiments, 
including  a  small  mounted  force,  be  organized  ;  the  President 
being  further  authorized  to  cause  the  ein-olment  of  additional 
squadrons  of  cavalry,  in  case  the  exigencies  of  the  service 
should  require  it.  The  amount  of  money  requisite  for  this 
increase  of  the  military  forces  was  estimated  at  $675,950 ; 
hence  additional  revenues  had  to  be  raised  amounting  to  that 
figure,  minus  $150,000,  which  latter  sum  Hamilton  thought 
would  represent  the  surplus  of  income  for  the  preceding  year. 
Pointing  out  three  expedients  for  providing  this  sum,  namely, 
disposing  of  the  interests  of  the  United  States  in  the  Bank  of 
the  United  States,  contracting  a  new  loan,  and  imposing  addi- 
tional taxes,  Hamilton  declared  himself  in  favor  of  the  last 
named  resort,  recommending  an  increase  of  the  specific  duties 
on  imported  wines,  distilled  spirits,  malt  liquors  and  ten  other 
articles,  and  also  of  certain  ad  valorem  duties.  The  increase 
of  import  duties  on  distilled  spirits  and  malt  liquors  recom- 
mended in  each  of  the  two  documents  just  mentioned,  was 
again  urged  in  Hamilton's  reports  respecting  the  difficulties 
in  the  execution  of  the  act  laying  duties  on  spirits  distilled 
within  the  United  States. 

Reviewing  the  objections  which  had  arisen  in  various 
quarters  against  this  law,  and  which  were  stated  in  a  number  of 
memorials  and  petitions,  the  Secretary  states :  "  These  objec- 
tions have  reference  to  a  supposed  tendency  of  the  act,  first,  to 
contravene  the  principles  of  liberty ;  secondly,  to  injure  morals ; 
thirdly,  to  oppress  by  excessive  penalties ;  fourthly,  to  injure 
industry  and  interfere  with  the  business  of  distilling.'" 

As  to  the  first  objection  Hamilton  took  the  ground  that 
there  can  surely  be  nothing  in  the  nature  of  an  internal  duty 
on  a  consumable  commodity,  more  incompatible  with  liberty 


74  LIQUOR   LAWS    OF   THE   UNITED    STATES. 

than  in  that  of  an  external  duty  on  a  like  commodity.  A 
doctrine  which  asserts  that  all  excises  are  inconsistent  with  the 
genius  of  a  free  government,  would  tend  to  deprive  the  Gov- 
ernment of  what  is,  in  most  countries,  a  principal  source  of 
revenue,  and,  by  narrowing  the  distribution  of  taxes,  would 
throw  an  undue  proportion  of  the  public  burden  on  the  mer- 
chant and  on  the  landholder. 

Tacitly  admitting  that  the  prejudices  against  excises  had  a 
rational  foundation  in  the  fact  that  the  manner  of  collecting 
such  taxes  had  generally  been  productive  of  a  tendency  to  in- 
terfere with  the  rights  of  the  tax-payers,  he  states  that  in  the 
case  of  the  law  under  consideration,  the  mere  name  of  the 
measure  misled  the  people,  while  prejudices  excluded  a  due 
attention  to  the  fact,  that  the  act  was  free  from  the  features 
which  have  served,  in  other  cases,  to  render  laws  on  the  same 
subject  exceptionable.  "  The  very  things  which  have  been  stu- 
diously avoided  in  the  formation  of  the  law  are  charged  upon 
it."  The  complaint  that  a  summary  and  discretionary  juris- 
diction vested  in  excise  officers,  tended  to  abridge  the  right  of 
trial  by  jury,  is  dismissed  by  Hamilton  as  unfounded,  there 
being  nothing  in  the  act  even  to  give  color  to  a  charge  of  the 
kind  against  it.  In  answer  to  the  charge  that  excise  officers 
are  empowered  to  search  and  inspect  indiscriminately  all  the 
houses  of  persons  engaged  in  the  business  of  distilling,  he 
refers  to  that  section  of  the  law  which  prescribes  that  all 
houses  and  buildings  used  for  the  purposes  in  question  must 
be  previously  entered  and  marked,  and  then  says :  "  An  officer, 
under  the  act  in  question,  can  inspect  or  search  no  house 
or  building,  or  even  an  apartment  of  any  house  or  build- 
ing, which  has  not  been  previously  entered  and  marked 
by  the  possessor  as  a  place  used  for  distilling  or  keeping 
spirits.  And  even  the  power,  so  qualified,  is  only  applicable 
to  distilleries  from  foreign  materials,  and  in  cities,  towns  and 
villages   from   domestic  material;  that  is,  only  in   cases   in 


CHAPTER  ni.  75 

which  the  law  contemplates  that  the  business  is  carried  on 
upon  such  a  scale  as  eflectually  to  separate  the  distillery  from 
the  dwelling  of  the  distiller.  The  distilleries  scattered  over 
the  country,  which  form  much  the  greater  part  of  the  whole, 
are  in  no  degree  subject  to  discretionary  inspection  and  search. 
The  true  principle  of  the  objection  which  may  be  raised  to  a 
general  discretionary  power  of  inspection  and  search  is,  that 
the  dwelling  of  a  citizen  ought  to  be  free  from  vexatious  in- 
quisition and  intrusion.  The  principle  cannot  apply  to  a  case 
in  which  it  is  put  in  his  own  power  to  separate  the  place  of  his 
business  from  the  place  of  his  habitation  /  and,  by  designating 
the  former  by  visible  public  marks,  to  avoid  all  intermeddling 
with  the  latter.  Such  marks  are  represented  (by  the  oppo- 
nents) as  a  dishonorable  badge  ;  and  thus  a  regulation,  designed 
as  much  to  conform  with  the  feelings  of  the  citizen,  as  for  the 
security  of  the  revenue,  is  converted  into  a  matter  of  objection. 
There  can  be  nothing  more  harmless  or  less  inconvenient  than 
such  a  regulation.  The  thing  itself  is  frequently  done  by  per- 
sons of  various  callings,  for  the  information  of  customers  ;  and 
why  it  should  become  a  hardship  or  grievance,  when  required 
for  a  public  purpose  can,  with  difficulty,  be  imagined.  The 
supposed  tendency  of  the  act  to  corrupt  morals,"  Hamilton 
continues,  "  relates  to  the  oaths,  which  are,  in  a  variety  of 
cases,  required,  and  which  are  liable  to  the  objection,  that  they 
give  occasion  to  perjury.  The  requiring  of  oaths  is  not  pecu- 
liar to  the  act  in  question  ;  oaths  are  common  appendages  of 
revenue  laws,  and  are  among  the  usual  guards  of  these  laws, 
as  they  are  of  public  and  private  rights  in  courts  of  justice. 
They  constantly  occur  in  jury  trials,  to  which  the  citizens  of 
the  United  States  are  so  much  and  so  justly  attached.  The 
same  objection,  in  different  degrees,  lies  against  them  in  both 
cases,  yet  it  is  not  perceivable  how  they  can  be  dispensed  with 
in  either.  As  to  the  charge  that  the  penalties  of  the  act  are 
severe  and  oppressive,  it  is  made  in  such  general  terms,  and  so 


76  LIQUOR    LAWS    OF   THE   TTNITED    STATES. 

absolutely  without  the  specification  of  any  single  particular  that 
it  is  difficult  to  imagine  where  it  points.  The  penalties  the  law 
inflicts  are  in  their  nature  the  same  with  those  which  are  com- 
mon in  revenue  laws,  and,  in  their  degree,  comparatively  mod- 
erate. There  appears  to  be  but  one  provision  in  the  law, 
which  admits  of  a  question  whether  the  penalty  prescribed 
may  not  partake  of  severity.  It  is  that  which  inflicts  the 
pains  of  perjury  on  any  person  who  shall  be  convicted  of  wil- 
fully taking  a  false  oath  in  any  of  the  cases  in  which  oaths  are 
required  by  the  act.  Precedents  in  relation  to  this  particular 
vary.  In  many  of  them,  the  penalties  are  less  severe  than  for 
perjury  in  courts  of  justice,  in  others  they  are  the  same. 
The  latter  are,  generally,  of  the  latest  date,  and  seem  to  have 
been  the  result  of  experience.  And  the  practice  is  certainly 
founded  on  strong  reasons.  1st.  The  additional  security  which 
it  gives  to  the  revenue  cannot  be  doubted.  Many  who  would 
risk  pecuniary  forfeitures  and  penalties  would  not  encounter 
the  more  disgraceful  punishment  annexed  to  perjury.  2d. 
There  seems  to  be  no  solid  distinction  between  one  false  oath 
in  violation  of  law  and  right,  and  another  false  oath  in  violation 
of  law  and  right.  A  distinction  in  the  punishment  of  different 
species  of  false  swearing  is  calculated  to  beget  false  opinions 
concerning  the  sanctity  of  an  oath ;  and  by  countenancing  an  im- 
pression that  a  violation  of  it  is  less  heinous  in  the  cases  in  which 
it  is  less  punished,  it  tends  to  impair  in  the  mind  that  scrupulous 
veneration  for  the  obligations  of  an  oath  which  ought  always 
to  prevail.  The  supposed  tendency  of  the  act  to  injure  in- 
dustry, and  to  interfere  with  the  business  of  distilling,  has  re- 
lation to  the  eff"ect  of  the  duty  upon  the  extent  of  the  manu- 
facture ;  when  a  manufacture  is  in  its  infancy  it  is  impolitic 
to  tax  it,  because  the  tax  would  be  both  unproductive,  and 
would  add  to  the  difficulties  which  naturally  impede  the  first 
attempts  to  establish  a  new  manufacture,  so  as  to  endanger  its 
success.     But  when  a  manufacture  (as  in  the  case  of  distilled 


CHAPTER   ni.  77 

spirits  in  the  United  States)  is  arrived  at  maturity,  it  is  as  fit 
an  article  of  taxation  as  any  other.  To  the  manufacture  itself 
the  duty  is  no  injury  if  an  equal  duty  be  laid  on  the  rival 
foreign  article,  and  when  a  greater  duty  is  laid  upon  the  latter 
than  upon  the  former,  as  in  the  present  instance,  the  difference 
is  a  bounty  on  the  domestic  article,  and  operates  as  an  encour- 
agement of  the  manufacture,  *  *  *  However  true  the 
allegation  that  it  is,  and  ought  to  be,  the  prevailing  policy  of 
nations  to  cherish  their  own  manufactures,  it  is  equally  true 
that  nations,  in  general,  lay  duties  for  the  purpose  of  revenue 
on  their  own  manufactures  ;  and  it  is  obvious,  to  a  demonstra- 
tion, that  it  may  be  done  without  injury  to  them.  The  most 
successful  nations  in  manufactures  have  drawn  the  largest  rev- 
enue from  the  most  useful  of  them.  It  merits  particular  at- 
tention, that  ardent  spirits  are  an  article  which  has  been  gen- 
erally deemed,  and  made  use  of,  as  one  of  the  fittest  objects  of 
revenue,  and  to  an  extent,  in  other  countries,  which  bears  no 
comparison  with  what  has  been  done  in  the  United  States." 

Reviewing,  in  the  thorough  and  exhaustive  manner  charac- 
teristic of  all  his  public  documents,  a  series  of  other  less  im- 
portant objections  to  the  act,  Hamiltion  concludes  his  report  * 
by  submitting  such  alterations  as  were  thought  to  remove  some 
of  the  causes  of  discontent  on  account  of  the  law,  and  to  ren- 
der the  collection  of  the  taxes  more  secure.  Among  his  prop- 
ositions he  repeats  the  one  made  in  his  report  on  manufactures 
relative  to  an  increase  of  the  rate  of  import  duties  on  distilled 
spirits.  He  further  proposed  that  in  localities  where  a  want 
of  money  might  prevent  the  payment  of  the  tax,  the  Govern- 
ment should  accept  the  product  itself  in  lieu  of  currency  ;  that 
the  distinction  respecting  distilleries  from  domestic  material 


*  It  is  in  tliis  report  that  Hamilton  estimates  the  annual  per  capita  con- 
sumption of  distilled  spirits,  in  the  United  States,  at  eleven  quarts.  The 
consumption  in  the  year  1880  did  not  amount  to  four  quarts. 


78  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

in  cities,  towns  and  villages  be  so  altered  as  to  confine  it  to 
one  or  more  stills  worked  at  the  same  distillery,  the  capacity 
or  capacities  of  wliich  together  do  not  fall  short  of  four  hun- 
dred gallons  ;  that  at  least  one  oflB.ce  of  inspection  shall  be  es- 
tablished in  each  coi^nty,  and  as  many  more  as  the  supervisor 
may  judge  necessary  for  the  accommodation  of  the  inhabitants. 
That  in  order  to  prevent  evasions  of  the  law,  the  possessors  or 
proprietors  of  stills  be  held  jointly  and  severally  liable,  and  the 
duty  be  made  a  specific  lien  on  the  still ;  also  that  the  owner 
of  the  land  upon  which  stills  are  worked  should  be  made  an- 
swerable for  the  duty,  except  where  the  distiller  is  a  honafide 
tenant  of  the  land  for  a  term  of  not  less  than  one  year ;  and 
that  the  exemption  specified  in  the  36th  section  of  the  law  be 
abolished.  He  also  recommended  a  number  of  changes  in 
respect  to  drawbacks,  to  the  marking  of  casks  and  other  ves- 
sels used  in  the  manufacture  of  distilled  spirits ;  to  the  man- 
ner and  time  of  paying  taxes,  and  to  the  character,  duties  and 
compensation  of  revenue  oflicers. 

These  suggestions,  together  with  the  recommendations  con- 
tained in  the  two  other  reports,  resulted  in  the  enactment  of 
two  laws.  The  one,  an  act  for  raising  a  further  sum  of  money 
for  the  protection  of  the  frontiers  (approved  May  2,  1792,) 
imposed  the  following  duties  on  objects  pertaining  to  the 
liquor  traflBc : 

Madeira  wine  of  the  quality  of  London  particular,  per  gallon,  fifty-six 
cent  ;  Madeira  of  the  quality  London  market,  per  gallon,  forty  cents  ;  other 
Madeira  wines,  per  gallon,  forty  cents  ;  Sherry,  per  gallon,  thirty -three 
cents  ;  Saint  Lucar,  per  gallon,  thirty  cents  ;  Lisbon,  per  gallon,  twenty-five 
cents  ;  Oporto,  per  gallon,  twenty -five  cents  ;  TenerifEe  and  Fayall,  per  gal- 
lon, twenty  cents.     All  other  wines,  forty  per  cent,  ad  valorem. 

Spirits,  distilled  wholly  or  chiefly  from  molasses,  or  other  foreign  materials: 
Of  the  first-class  of  proof,  per  gallon,  twenty-eight  cents. 


second 

third 

fourth 

fifth 

sixth 


twenty-nine 

thirty-one 

thirty-four 

forty 

fiftv 


CHAPTER   III.  79 

All  other  distilled  spirits  : 

Of  second-class  of  proof  and  under,  per  gallon,  twenty-five  cents. 
"  tliird       '•  "  "  "  twenty-eight    " 

"  fourth    "  "  "  "  thirty-two 

"  fifth        "  "  "  "  thirty-eight      " 

"  sixth       "  "  "  "  forty-six 

Beer,  Ale  and  Porter,  per  gallon,  eight  cents. 

(Black  quart  bottles  again  exempt  from  the  duty  on  glass  ware. ) 

The  other  law  (approved  May  8,  1791),  concerning  the 
internal  duties  on  distilled  spirits,  is  sufficiently  important  to 
warrant  its  partial  reproduction.     It  reads : 

Section  1.  Be  it  enacted,  &c..  That  from  and  after  the  last  of  June 
next,  the  present  duties  upon  spirits  distilled  within  the  United  States,  and 
on  stills  shall  cease,  and  that  in  lieu  thereof,  upon  all  spirits  which  after  the 
said  day  shall  be  distilled  wholly  or  in  part  from  molasses,  sugar  or  other 
foreign  materials,  there  shall  be  paid  the  duties  following,  that  is  to  say  : 
For  every  gallon  of  those  spirits  of  the  first-class  of  proof,   ten  cents. 


second 

third 

fourth 

fifth 

sixth 


eleven 

twelve  " 

fourteen  " 

eighteen  " 

'  twenty-five  " 


And  upon  all  spirit  which  after  the  said  day  shall  be  distilled  within 
the  United  States  from  materials  of  the  growth  or  produce  of  the  United 
States,  in  any  city,  town  or  village,  at  any  distillery  at  which  there  shall  be 
one  or  more  stills  which,  singly  or  together,  shall  be  of  the  capacity  of  four 
hundred  gallons  or  upwards,  there  shall  be  paid  the  duties  following  : 
For  every  gallon  of  those  spirits  of  the  first-class  of  proof,  seven  cents. 
"  second  " 

third     " 
"  fourth   " 

fifth       " 
"  sixth     " 

And  upon  stills  which  after  the  said  day  shall  be  employed  in  distilling- 
spirits  from  materials  of  the  growth  or  produce  of  the  United  States,  at  any 
other  place  than  a  city,  town  or  village,  or  at  any  distillery  in  a  city,  town 
or  village,  at  which  there  shall  be  one  or  more  stills,  which,  singly  or  to- 
gether shall  be  of  less  capacity  than  four  hundred  gallons,  there  shall  be  paid 
the  yearly  duty  of  fifty-four  cents  for  every  gallon,  English  wine  measure,  of 
the  capacity  or  contents  of  each  and  every  such  still,  including  the  head 


eight 
nine 
eleven 
thirteen 
eighteen  " 


80  LIQUOK    LAWS    OF   THE   TJNITED    STATES. 

thereof  :  Provided,  that  it  shall  be  at  the  option  of  the  proprietor  or  posses- 
sor of  any  such  still,  instead  of  the  said  yearly  duty,  either  to  pay  seven 
cents  for  every  gallon  of  spirits  by  him  or  her  distilled,  or  to  pay  at  the  rate 
of  ten  cents  per  gallon  of  the  capacity  for  each  and  every  month  of  the  em- 
ployment of  such  still,  and  in  case  the  said  proprietor  shall  elect  to  pay  either 
the  said  rate  of  seven  cents,  or  the  said  monthly  rate  of  ten  cents,  according 
to  the  capacity  of  his  still,  he  at  the  time  of  making  entry  of  his  still  or 
stills,  shall  by  writing  under  his  hand,  left  at  the  office  of  inspection  where 
such  entry  shall  be  made,  notify  the  said  election,  and  if  the  same  shall  be 
to  pay  the  said  monthly  rate  of  ten  cents,  shall  demand  a  license  for  the 
term  of  time,  specifying  the  day  of  commencing  and  the  day  of  ending, 
during  which  he  shall  intend  to  work  his  still  or  stills,  which  license  shall 
without  delay  or  expense  to  the  said  proprietor  be  granted.  And  in  case  of 
an  election  to  pay  the  said  monthly  rate  of  ten  cents,  it  shall  not  be  lawful 
for  any  person  by  whom  the  same  shall  have  been  made,  to  work  his  still  or 
stills  at  any  time  within  the  year  from  the  date  of  his  entry  thereof,  other 
than  that  for  which  a  license  shall  have  been  granted  unless  he  shall  have 
previously  obtained  another  license  for  such  further  time,  which  upon  like 
application  shall  be  granted  in  like  manner,  and  if  such  person  shall  work 
his  still  or  stills,  contrary  to  direction  or  provision  aforesaid  he  shall  forfeit 
and  pay  for  every  such  ofEence  two  hundred  dollars. 

Section  2.  That  there  be  in  each  county  comprehended  within  any  dis- 
trict, at  least  one  office  of  inspection  at  which  every  person  having  or  keep- 
ing a  still  or  stills  within  such  county  shall,  between  the  last  day  of  May 
and  the  first  day  of  July  in  each  year,  make  entry  of  such  still  or  stills  ;  and 
at  which  every  person,  who  being  a  resident  within  the  county  shall  procure 
a  still  or  stills,  or  who  removing  within  a  county,  shall  bring  therein  a  still 
or  stills,  shall,  within  thirty  days  after  such  procuring  or  removal,  and  be- 
fore he  or  she  shall  begin  to  use  said  stills,  make  entry  thereof.  And 
every  entry,  besides  describing  each  still  and  capacity  thereof,  shall  specify 
the  place  where,  and  the  person  in  whose  possession  it  is,  and  the  purpose 
for  which  it  is  intended,  as  whether  for  sale  or  use  in  distilling  ;  and  in 
the  case  of  removal,  shall  specify  the  place  from  which  every  such  still 
shall  have  been  brought. 

Section  3.  That  every  proprietor  or  possessor  of  a  still  shall  be  jointly 
and  severally  liable  for  the  duty  thereupon  ;  and  that  every  owner  of  land, 
upon  which  any  still  shall  be  worked,  shall  be  liable  for  the  duty,  unless  the 
same  shall  be  worked  by  a  lawful  and  bona  fide  tenant  of  the  land  of  an 
estate,  not  less  than  for  one  year,  or  unless  such  owner  can  make  it  appear, 
that  the  possessor  of,  or  person  by  whom  such  still  shall  have  been  worked, 
was  during  the  whole  time  of  working  the  same,  a  trespasser  or  intruder  on 
his  laud. 


CHAPTER   in.  81 

Section  4.  Tliat  every  oflBcer  of  inspection  within  whose  survey  any 
distillery  of  Geneva  or  sweet  cordial,  subject  to  the  payment  of  duty  by  the 
gallon  of  spirits  distilled  thereon  may  be,  shall  forbear  to  visit  or  inspect, 
for  a  space  not  exceeding  two  hours  in  each  day,  such  part  of  the  said  dis- 
tillery as  he  may  be  required  by  the  proprietor  or  manager  of  such  distillery 
to  forbear  to  visit  and  inspect,  for  which  purpose  it  shall  be  necessary 
for  the  said  proprietor  to  give  notice  in  writing  to  the  said  officer,  describing 
therein  particularly  the  part  of  such  distillery,  which  it  shall  be  his  desire 
that  the  said  officer  may  forbear  to  visit,  &c. ,  *  *  * 

Section  5.  That  it  shall  be  in  the  discretion  of  the  Secretary  of  the 
Treasury  to  regulate  as  well  the  marks,  to  be  set  upon  the  casks,  vessels  and 
packages  containing  distilled  spirits,  as  the  forms  of  the  certificates  which 
are  to  accompany  the  same,  and  that  when  any  cask  or  vessel  in  which  dis- 
tilled spirits  have  been  contained,  shall  have  been  emptied  of  its  contents, 
it  shall  be  lawful  for  the  marks  thereupon  to  be  effaced  by,  or  in  the  pre- 
sence of  an  officer  of  inspection,  and  if  the  said  cask  or  vessel  shall  after- 
wards be  used  for  putting  therein  other  spirits,  the  same  may  be  marked 
anew. 

Section  6.  That  instead  of  a  notice  of  twenty-four  hours  heretofore 
required  to  be  given  of  the  intent  to  export  distilled  spirits  in  order  to 
obtain  the  benefit  of  the  drawback  of  the  duties  thereupon,  six  hours  shall 
be  sufficient. 

Section  7.  That  there  be  an  abatement  for  leakage  at  the  rate  of  two 
per  cent,  in  every  case  in  which  the  duty  shall  be  payable  by  the  gallon  of 
the  spirits  distilled,  to  be  allowed  at  the  distillery  where  such  spirits  shall 
be  made. 

Section  8.  That  the  officer  of  inspection  within  whose  survey  any  still 
shall  be,  the  duty  whereupon  is  payable  according  to  the  capacity  of  the 
still,  shall  identify  by  progressive  numbers  and  other  proper  marks,  every 
Buch  still  within  his  survey,  and  the  duty  thereupon  shall  operate  as  a  spe- 
cific lien  upon  the  said  still. 

Section  9.  That  every  distiller  of  and  dealer  in  spirits,  who  may  have 
in  his  or  her  possession,  distilled  spirits  not  marked  or  certified,  pursuant 
to  the  act,  intituled  "  An  Act  repealing  after  the  last  day  of  June  next,  the 
duties  heretofore  laid  upon  distilled  spirits  imported  from  abroad,  and  lay- 
ing others  in  their  stead,  and  also  upon  spirits  distilled  within  the  United 
States  and  for  appropriating  the  same,"  shall, prior  to  the  last  day  of  Septem- 
ber next,  report  the  spirits  in  his  or  her  possession  in  writing,  at  some  office 
of  inspection,  to  the  end  that  such  spirits  may  be  marked  and  certified  as 
old  stock.    And  that  from  and  after  the  said  last  day  of  September  next. 


82  LIQUOR   LAWS    OF   THE    UNITED    STATES. 

casks  and  vessels  of  the  capacity  of  twenty  gallons  and  upwards,  contain- 
ing distilled  spirits,  which  shall  be  found  in  the  possession  of  any  distiller  or 
dealer  in  spirits,  except  at  a  distillery  were  the  same  were  made,  or  in  tran- 
sit from  one  place  to  another,  without  being  marked  according  to  law,  or 
without  having  a  certificate  from  some  proper  oiiicer,  shall  be  liable  to  seizure 
and  forfeiture,  and  that  it  shall  be  the  duty  of  the  several  officers  of  in- 
spection, upon  request  of  any  dealer  or  distiller,  to  take  measures  for  the 
marking  of  casks,  vessels  and  packages  containing  distilled  spirits,  and  to 
furnish  such  dealer  or  distiller,  free  from  expense,  with  certificates  to  accom- 
pany the  same.  Provided,  That  it  shall  not  be  incumbent  upon  any  such 
officer  to  mark  or  certify  any  cask,  vessel  or  package  which  ought  to  have 
been  before  marked  or  certified  according  to  any  law  of  the  United  States. 

Section  10.  That  from  and  after  the  last  day  of  April,  one  *tkou- 
sand  seven  hundred  and  ninety-three,  no  distilled  spirits  except 
arrack  and  sweet  cordials,  shall  be  brought  into  the  United  States 
from  any  foreign  port  or  place,  except  in  casks  or  vessels  of  the  capacity  of 
ninety  gallons  and  upwards. 

Section  11.  That  no  drawback  of  the  duty  on  distilled  spirits  which 
shall  be  exported  after  the  last  day  of  June  next,  shall  be  allowed  upon  any 
quantity  less  than  one  hundred  gallons. 

Section  12.  That  after  the  last  day  of  June  next,  no  distilled  spirits 
shall  be  brought  into  the  United  States,  from  any  foreign  part  or  place,  in 
any  cask  or  vessel,  which  shall  have  been  marked  pursuant  to  any  law  of 
the  United  States  concerning  distilled  spirits,  on  pain  of  forfeiture  of  the 
spirits  so  brought,  and  of  the  ship  or  vessel  in  which  they  shall  be  brought. 

Section  13.  That  if  the  owner  or  possessor  of  any  still  or  stills  shall 
neglect  to  make  entry  thereof,  within  the  time  and  in  the  manner  prescribed 
by  the  second  section  of  this  Act,  such  owner  or  possessor  shall  forfeit  and 
pay  the  sum  of  two  hundred  and  fifty  dollars  :  and  if  any  distilled  spirits, 
except  arrack  and  sweet  cordials,  shall,  after  the  last  day  of  April  next,  be 
brought  into  the  United  States  in  casks  or  vessels  of  less  capacity  than 
ninety  gallons,  all  such  spirits,  and  the  casks  and  vessels  coutaiuing  the 
same,  shall  be  subject  to  seizure  and  forfeiture,  and  every  such  penalty  or 
forfeiture  shall  be  one  half  to  the  use  of  the  person  who  shall  first  discover 
and  make  known  the  matter  or  thing  whereby  the  same  shall  have  been 
incurred. 

It  appears  somewhat  difficult  to  determine  how  far  Hamil- 
ton's proposition  to  protect  the  domestic  manufacture  of  dis- 
tilled spirits  would  liave  affected  legislation,  in  the  absence  of 


CHAPTER   m.  83 

that  combination  of  circumstances  which  necessitated  an  in- 
crease of  revenue  and  rendered  expedient  the  reduction  of 
internal  duties  upon  stills  and  ardent  liquors.  The  increase  of 
the  import  duties,  effected  simultaneously  with  a  reduction  of 
the  internal  taxes,  certainly  was  intended  as  a  protective 
measure ;  but  it  must  remain  a  matter  for  conjecture,  whether 
its  adoption  was  not  due  quite  as  much  to  a  desire  to  re- 
move the  discontent  manifested  in  consequence  of  the  excise 
law,  as  to  considerations  of  a  purely  Protectionist  character. 

So  far  as  malt  liquors  are  concerned,  the  increased  import 
duty  cannot  fail  to  be  regarded  as  a  means  for  the  encourage- 
ment and  protection  of  breweries,  not  only  because  there  is 
abundant  direct  evidence  of  a  very  decided  purpose  to  foster 
this  manufacture  ;  but  also  because  the  additional  revenue  to  be 
derived  from  an  increase  of  import  duties,  was  not  a  matter 
worthy  of  serious  consideration.  Out  of  a  total  of  $523,000 
to  be  raised  by  the  additional  taxes,  malt  liquors  were  estimated 
to  yield  but  $5,000,  on  the  basis  of  the  amount  of  importation 
of  the  previous  year.  Considering  that  the  increased  rate 
would  diminish  the  quantity  imported — as,  indeed,  it  was  in- 
tended to  do — it  becomes  evident  that  protection  and  encour- 
agement were  the  sole  factors  in  the  increase  of  duties  in 
question. 


CHAPTER  lY. 

the   westeen    or    "whiskey    insukrection  :    violent   opposi- 
tion to  the  establishment  of  excise  offices. attack  on 

captain  faulkner. meeting  at  pittsburgh. seditious 

resolutions  adopted. proclamation  by  the  president. 

reign   of  terror  inaugurated    by  tom   the   tinker. 

continuation  of  outrages  upon  officers  and  complying 

distillers. attack  on,    and  destruction  of,    general 

Neville's  house. — seven  thousand  armed  rioters  march 
into  pittsburgh. bradford's   design   to   revolutionize 

adjoining     states     and    form     an     INDEPENDENT    STATE. 

MAILS  ROBBED, SECOND    PROCLAIMATION    BY   THE  PRESIDENT. 

MILITIA      CALLED      OUT. FRUITLESS     EFFORTS     OF     A     PEACE 

COMMISSION. ADVANCE     OF    THE     ARMY. FLIGHT     OF     THE 

MORE     VIOLENT     LEADERS. RESOLUTIONS     OF     SUBI^HSSION. 

ARRIVAL     OF     THE     ARMY     AT     PARKISON'S     FERRY. INSUR- 
GENTS    DISPERSED   AND    ORDER   RE-ESTABLISHED. 

Under  the  new  law  embracing,  as  has  been  seen,  the  more 
important  modifications  suggested — some  of  them  intended 
to  obviate,  others  calculated  pacifically  to  overcome  opposi- 
tion— the  revenue  officers  succeeded  little  better  than  before 
in  collecting  the  taxes  from  the  recalcitrant  distillers.  A  dis- 
position to  comply  with  the  law  was,  indeed,  sporadically 
manifested  in  the  localities  least  infected,  but  the  opposition 
soon  found  means  to  smother  it.  The  menaces  and  outrages 
by  which  the  Federal  officers  had  before  been  prevented  from 
the  fulfillment  of  their  duties,  were  now  generally  applied 
against  every  person  in  any  manner  favoring  the  law  or  its 
executors;  and  in  a  short  time  it  became  manifest,  that  to  aid, 
even  indirectly,  in  facilitating  the  collection  of  duties  must 


CHAPTER   IV.  85 

inevitably  imperil  the  life  and  property  of  those  doing  so. 
For  a  time  the  opposition's  principal  object  was  to  prevent 
the  carrying  out  of  the  second  section  of  the  new  law  which 
provided  that  there  shall  be  one  office  of  inspection  in  each 
county ;  the  old  law  having  left  it  to  the  discretion  of  the 
supervisors  (there  being  one  for  each  State)  to  appoint  these 
officers.  This  object  was  first  sought  to  be  attained  by  threat- 
ening the  well-disposed  citizens  with  destruction  of  life  and 
property  in  case  they  should  give  aid  or  comfort  to  the  excise 
officers.  Too  many  horrible  proofs  of  the  determined  char- 
acter of  the  opposition  had  been  given,  to  permit  the  people  to 
ignore  these  threats,  and,  in  consequence  of  the  state  of  fear 
produced  by  them,  it  was  for  a  time  impossible  to  obtain  suit- 
able places  for  excise  offices.  Finally  in  August,  1792,  an 
army  officer,  Captain  William  Faulkner,  gave  permission  for 
the  use  of  his  house  as  an  office  of  inspection  in  the  county  of 
Washington,  but  was  compelled  by  the  rioters  to  rescind  his 
action.  The  occurrence  is  related  in  Hamilton's  report  to  the 
President  *  in  these  words  : 

"  Captain  Faulkner,  being  in  pursuit  of  some  deserters 
from  his  troops,  was  encountered  by  a  number  of  people  in 
the  same  neighborhood  where  Johnson  had  been  ill-treated 
the  preceding  year,  who  reproached  him  with  letting  his  house 
for  an  excise  office,  drew  a  knife  upon  him,  threatened  to 
scalp,  tar  and  feather  him,  and  reduce  his  house  and  property 
to  ashes,  if  he  did  not  solemnly  promise  to  prevent  tlie  further 
use  of  his  house  for  an  office.  Faulkner,  to  save  his  life  and 
property,  made  the  promise,  and,  in  consequence  of  the  cir- 
cumstance, wrote  a  letter  to  the  inspector,  dated  the  20th  of 
August,  countermanding  the  permission  for  using  his  house." 

In  order  to  prevent  others  from  letting  their  houses  for 


*  Hamilton's  Works.     Cabinet  Papers.     Vol.  IV.,  p.  585. 


86  LIQUOR   LAWS    OF   THE    UNITED    STATES. 

the  purpose  in  question,  Captain  Faulkner  was  further  com- 
pelled to  publish  a  letter  in  the  Pittshwrgh  Gazette,  giving 
notice  that  the  office  of  inspection  should  no  longer  be  kept  in 
his  house. 

A  manifesto  breathing  the  same  spirit  which  dictated  the 
outrage  upon  Faulkner,  was  made  public  at  about  the  same 
time ;  it  was  prepared  in  a  meeting  of  a  number  of  persons 
from  Washington,  Fayette  and  Allegany  counties,  held  at 
Pittsburgh  (August,  1792).  Among  other  things  the  resolu- 
tions set  forth,  that  *'atax  on  spirituous  liquors  is  unjust  in 
itself  and  oppressive  upon  the  poor  ;  that  internal  taxes  upon 
consumption  must,  in  the  end,  destroy  the  liberties  of  every 
country  in  which  they  are  introduced ;  and  that  the  law  would 
bring  distress  and  ruin  upon  the  western  counties."  The 
meeting — of  which  Gallatin  acted  as  secretary — also  made 
arrangements  to  enter  into  correspondence  with  opponents  of 
the  Government  in  the  four  refractory  counties  and  other 
parts  of  the  Union,  the  object  of  this  being  to  effect  concerted 
action.  It  was  further  declared  that  the  persons  attending  the 
meeting  will  take  all  legal  means  to  obstruct  the  operation  of 
the  excise  law,  that  they  "  will,  in  future,  consider  those  who 
hold  offices  for  the  collection  of  the  duty  as  unworthy  of  their 
friendship,  that  they  will  have  no  intercourse  nor  dealings 
with  them,  will  withdraw  from  them  every  assistance,  with- 
hold all  the  comforts  of  life  which  depend  upon  those  duties, 
and  will  upon  all  occasions  treat  them  with  contempt,  earnestly 
recommending  to  the  people  at  large  to  treat  them  in  the 
same  manner." 

This  public  declaration,  taken  in  connection  with  the  out- 
rages already  committed  in  accordance  and  harmony  with 
previous  manifestations  of  a  like  nature,  certainly  partook 
of  an  insurrectionary  character,  and  would  have  justified  strong 
measures  for  the  vindication  of  the  "majesty  of  the  law." 
Findley  styled  these  resolutions  censurable  on  the  ground  of 


CHAPTER   IV.  87 

discretion,*  but  deemed  them  entirely  lawful ;  and  in  support 
of  his  opinion  he  refers *to  the  fact  that  the  Attorney-General 
of  the  United  States,  Edmund  Randolph,  failed  to  discover 
anything  actionable  in  the  testimony  procured  against  the 
persons  who  had  participated  in  the  meeting.  A  most  unfor- 
tunate reference,  in  the  light  of  subsequent  events  which 
showed  Randolph  to  have  been  in  collusion  with  the  leaders 
of  the  Insurrection  as  well  as  with  the  French  cabal  of  Genet. 
Hamilton's  view  of  the  determination  on  the  part  of  the 
opponents  to  obstruct  the  operations  of  the  law  is  given  in 
these  words : 

"  The  idea  of  pursuing  legal  measures  to  obstruct  the 
operation  of  a  law  needs  little  comment.  Legal  measures 
may  be  pursued  to  procure  the  repeal  of  a  law,  but  to 
obstruct  its  operation  presents  a  contradiction  in  terms. 
The  operation,  or  what  is  the  same  thing,  the  execution 
of  a  law  cannot  be  obstructed  after  it  has  been  constitu- 
tionally enacted,  without  illegality  and  crime." 

On  the  15th  of  September  (1792)  Washington  issued  a 
proclamation  "  admonishing  and  exhorting  all  persons  whom- 
soever it  might  concern,  to  refrain  from  unlawful  combina- 
tions and  proceedings  whatsoever,  having  for  object  or  tending 
to  obstruct  the  operation  of  the  law,  inasmuch  as  all  lawful 
means  would  be  applied  for  bringing  to  justice  the  infractors 
thereof  and  securing  obedience  thereto  ;  and,  moreover,  charg- 
ing all  courts,  magistrates  and  officers,  according  to  the  duties 
of  their  several  offices,  to  exert  the  powers  in  them  respec- 
tively vested  by  law  for  the  purpose  aforesaid,  and  also 
enjoining  and  requiring  all  persons  loving  the  welfare  of  their 


*  History  of  the  Insurrection,  p.  44.  It  may  not  be  amiss  to  place  this 
version  of  the  Insurrection  in  a  true  light,  seeing  that  it  is  even  at  the 
present  day  treated  with  that  confidence  and  deference  which  are  due  only 
to  impartiality  and  fairness. 


88  LIQUOR    LAWS    OF   THE    UNITED   STATES. 

country,  interested  in  the  just  authority  of  Government  and 
preservation  of  public  peace,  to  be  aiding  therein ;  likewise 
directing  that  offenders   be    prosecuted    in    accordance  with 

law." 

The  efforts  made  under  and  by  virtue  of  this  proclama- 
tion, to  break  the  spirit  of  resistance,  by  employing  the 
judiciary  machinery — to  which  end  the  supervisor  of  the 
revenue  for  the  district  of  Pennsylvania,  George  Clymer,  had 
been  directed  to  proceed  to  the  refractory  surveys  and  to  col- 
lect testimony,  whereon  to  base  indictments — proved  abortive, 
partly  in  consequence  of  errors  committed  by  the  officer  just 
named,  and  partly  by  reason  of  the  decision  of  the  Attorney- 
General  of  the  United  States,  to  the  effect,  as  already  stated, 
that  the  resolutions  adopted  at  the  last  Pittsburgh  meeting 
offered  no  ground  for  indictment.  In  the  case  of  the  Faulkner 
riot  prosecution  was  attempted  against  two  persons ;  but  the 
latter  had  to  be  set  free,  owing  to  mistaken  identity. 

In  this  perplexing  state  of  affairs,  a  recourse  to  force  being 
feared  by  some  officers  of  the  Government  as  much  as  it  was 
openly  deprecated,  but  secretly  accelerated  by  others,*  the  Trea- 
sury Department  endeavored  to  conciliate  the  distillers  by  a 
measure  which  had  been  proposed  by  Hamilton,  but  was  not 
embodied  in  the  new  law,  namely :  The  purchase  of  spirits  for 
the  use  of  the  army  from  those  distillers  of  the  western  coun- 
ties who  had  complied  with  the  law.  In  addition  to  this,  an 
attempt  was  made  to  intercept  the  markets  for  the  surplus 
produce  of  the  distilleries  in  the  western  counties,  and  prose- 
cute violators  of  the  law.  Some  seizures  were  made  of  spirits 
intended  for  market,  occasional  purchases  were  effected  and 
prosecutions  instituted  against  non-complying  distilleries.    This 

*  While  officially  shielding  the  rioters  from  the  employment  of  force 
against  them,  Randolph  seems  to  have  secretly  done  all  in  his  power  to 
accelerate  the  course  of  those  events,  which  could  not  but  ultimately  lead 
to  what,  as  yet,  he  endeavored  to  avert  by  his  decision. 


CHAPTER  IV. 


89 


leniency  of  the  Government  was,  however,  variously  construed. 
While  some  took  it  at  its  real  worth,  and  felt  inclined  to  yield 
obedience  to  the  law,  others— and  by  far  the  majority  of  citi- 
zens— regarded  it  as  a  symptom  of  weakness  of  the  Adminis- 
tration, and  as  an  earnest  of  the  ultimate  repeal  of  the  law. 
The  willingness  of  some  distillers  to  comply  with  the  law  only 
tended  to  exasperate  the  delinquents,  who  again  began  to 
practice  their  old  m.ethods  of  intimidation.  In  spite  of  a  law 
passed  in  March,  1793,  authorizing  special  sessions  of  the 
United  States  Circuit  to  be  held  at  convenient  places  within 
the  Judicial  District,  so  as  to  afford  protection  to  the  well- 
disposed,  by  a  speedy  course  of  justice  against  rioters,  outrages 
continued  to  occur  quite  frequently,  only  differing  from 
those  which  preceded  them  in  their  increased  cruelty  and 
violence. 

In  April,  1793,  the  house  of  the  revenue  inspector  of 
Fayette  County  was  attacked  at  night  by  a  party  of  regula- 
tors ;  but,  fortunately,  the  officer  was  absent  from  home.  The 
attack  was,  however,  repeated  on  the  22d  of  November,  and 
the  inspector  was  then  compelled,  at  the  muzzle  of  a  pistol,  to 
surrender  his  commission  and  books,  and  to  swear  that  he 
would  publish  his  resignation  in  the  newspapers,  on  pain  of 
another  attack  and  the  total  demolition  of  his  property.  The 
stills,  barns  and  houses  of  complying  distillers  were  burned ; 
persons  who  dared  to  testify  against  rioters  fared  no  better. 
Armed  regulators  patrolled  through  the  four  counties,  sud- 
denly appearing  here,  there  and  everywhere  ;  terrorizing  every- 
body, and  compelling  infractions  of  the  law,  where  otherwise 
the  fullest  submission  might  have  been  accorded  to  the  fair 
demands  of  the  Government.  "The  threats  of  the  rioters," 
says  Findley,  "  contained  in  letters  signed  by  Tom  the 
Tinker,  were  directed  to  certain  persons,  with  express  orders 
to  have  them  published,  and  the  editor  of  the  Pittsburgh 
Gazette  did  not  think  it  prudent  to  refuse  to  admit  them." 


90  LIQUOB   LAWS   OF   THE    UNITED    STATES. 

Tom  the  Tinker  is  said  to  have  first  been  suggested  as  a  nom 
de  guerre  by  a  rioter  of  the  name  of  John  Holcroffc.  Destroy- 
ing the  stills  of  law-abiding  citizens  was  termed  "  mending"  ; 
tinker  being  a  synonym  of  mend,  the  former  word,  as  a  sub- 
stantive, ultimately  became  the  appellation  for  the  destroyers 
of  stills. 

Although  the  reign  of  terror  maintained  by  Tom  the 
Tinker  exceeded  anything  experienced  before  its  inauguration, 
there  seemed  to  be,  towards  the  close  of  1793,  and  the  begin- 
ning of  1794,  a  more  general  disposition  to  comply  with  the 
law.  Many  of  those  who  had  at  first  opposed  excise  duties 
shrank  from  the  consequences  of  the  outrages  committed  by 
the  Tinker;  and  that  feeling  of  insecurity  which  must  inevit- 
ably attend  an  anarchical  state  of  things,  told  very  perceptibly 
on  the  material  prosperity  of  the  people.  It  was  thought  that 
a  general  compliance  with  the  law  could  be  eifected  if  the  fear 
of  Tinkerdom  were  counteracted  by  a  swift  course  of  retribu- 
tive justice.  In  order  to  attain  this  object,  and  at  the  same 
time  still  more  efiectually  to  remove  one  of  the  objections  to 
the  law,  an  act  was  passed  on  the  fifth  of  June,  1794,  confer- 
ring on  the  State  courts  jurisdiction  concurrent  with  the 
courts  of  the  United  States.  Among  the  many  alleged  griev- 
ances of  the  rioters  the  mode  of  prosecuting  violators  of  the 
excise  held  a  prominent  place,  and  the  substance  of  the  act 
just  mentioned  was  virtually  a  compliance  with  one  of  their 
demands. 

Under  this  new  law — the  last  of  the  many  concessions  made 
to  a  seditions  spirit,  under  stress  of  circumstances  pregnant 
with  evil — the  Government  determined  to  enforce  the  entering 
of  stills  and  the  collection  of  taxes  at  all  hazards,  and  it  was 
now  in  a  better  condition  to  do  so  than  ever  before.  All  the 
artifices  and  stratagems  employed  by  the  opposition  to  render 
Washington's  administration  odious,  had  failed ;  the  investi- 
gation into  the  conduct  of  the  Treasury  had  resulted  in  a 


CHAPTER    IV.  91 

brilliant  vin.lication  of  Hamilton's  course ;  the  cabal  of  the 
French  faction  had  received  a  severe  blow  by  Genet's  recall, 
and  in  the  matter  of  foreign  relations  the  Administration  had 
achieved  a  victory. 

Immediately  after  the  adjournment  of  Congress,  June  9, 
1T94,  indictments  were  found  and  warrants  issued  against  a 
number  of  non-complying  distillers  in  Western  Pennsylvania. 
The  marshal,  who  was  charged  with  the  serving  of  these  war- 
rants, met  with  no  resistance,  until,  having  successfully  served 
twenty-nine  papers,  he  reached  the  house  of  a  delinquent  dis- 
tiller named  Miller,  near  Peter's  creek.  On  his  way  he  was 
accompanied  by  John  Neville,  revenue  inspector  of  the  dis- 
trict. Both  officers  were  attacked  by  a  party  of  armed  men, 
fired  upon  and  compelled  to  fly  for  their  lives.*  Neville  re- 
turned to  his  house,  in  the  vicinity  of  Pittsburgh.  On  the 
same  day  the  "  Mingo  Creek  Society,"  composed  of  a  battalion 
of  militia,  rendezvoused,  as  Findlej  says,  "in  order  to  form  a 
select  corps  of  militia,  as  their  quota  of  the  80,000  men  required 
by  Congress."  It  is  not  known  whether  the  organization  of 
this  select  corps  was  perfected  for  the  laudable  purpose  stated ; 
it  is  a  fact,  however,  that  the  next  morning  (July  16th,  1794), 
led  by  John  Holcroft,  a  party  of  about  forty  of  those  who  had 


*  Findley  states  in  his  account  :  "  A  number  of  men  were  observed  as 
if  in  pursuit  of  them  and  one  gun  was  discharged  ;  not  however,  with  a 
design  to  do  execution.  It  is  well  known  that  if  the  design  had  been  to 
shoot  one,  or  either  of  them,  they  could  not  have  escaped. "  p.  77.  On  the 
the  very  next  page  Findley  blames  Neville  for  having  accompanied  the 
marshal,  in  these  words  contradicting  in  toto  the  assertion,  that  the  gun 
was  fired  without  design  to  do  execution  :  "  The  inspector  knew  that  there 
were  designs  again-^t  him,  and  he  ought  not  to  have  involved  the  marshal 
in  the  same  risk  with  himself."  The  same  author  explains  the  animosity 
of  the  people  against  Neville,  by  stating  that,  as  the  latter  had  formerly 
opposed  the  State  excise,  and  now  accepted  an  excise  office  from  the  Fede- 
ral Government,  the  people  "  looked  on  him  as  giving  up  his  principles  for 
a  bribe  ;  "  the  bribe  being  his  salary  as  inspector,  amounting  to 


92  LIQUOK    LAWS    OF    THE   TNITED    STATES. 

attended  the   militia   meeting,  appeared   with  arms  in  their 
hands,  at  the  house  of  General   jSTeville,  and   prepared  foi-  an 
assault.     The  inspector,  aware  of  the  temper  of  his   assailants 
of  the  evening  before,  had,  in  anticipation  of  an  attack,  barri- 
caded his  house  and  armed  his  servants.     On  the  approach 
of  the   rioters,  he   opened    a   brisk  fire,  and   drove  back  the 
attacking  party,  with  a  loss  to  the  latter  of  five  men  wounded 
and  one  killed.*     Conscious  of  the  perilousness  of  his  position, 
Keville  applied  for  protection  to  two  magistrates,  and  the  com- 
mandants of  the  militia  at  Pittsburgh,  and  failing  in  this,  he 
asked  for,  and  obtained,  a  detachment  of  eleven  regulars  from 
the  garrison  of  Fort  Pitt,  under  the  command  of  Major  Fitz- 
patrick,  his  kinsman.     In  the  meantime  the  rioters  made  pre- 
parations for  a  renewal  of  the  attack  and  the  gratification  of 
the  spirit  of  vengeance,  which  had  been  aroused  by  the  casual- 
ties of  the  previous  attack,  and  stimulated  bj  the  incendiary 
eloquence   of  John   Holcroft.     The  next  morning  the  Mingo 
Creek  battalion,  fully  armed   and.   equipped   in  militia  style, 
assembled  at  Couche's  Fort  and   after  holding  a  council    of 
war,  appointed  a  committee  of  three,  for  the  conduct  of  the 
expedition.     This  committee  placed  McFarlane,   formerly    a 
lieutenant  in  the  Continental  army,  in  command  of  the  troops 
numbering  five  hundred  men.     On  seeing  this  body  of  despe- 
rate men   approaching  his   house,  Keville,  convinced   that  he 
could  not  successfully  defend  his  property  against  such  odds^ 
concluded  to  escape,   leaving   Major  Fitzpatrick   to  make  a 
capitulation  in  favor  of  the  property,  if  practicable,  if  not,  to 
defend  it  as  long  as  possible. 

Before    begmning   the   assault,  McFarlane,  in    accordance 


*  Findley  describes  tins  episode  as  follows  ;  The  party,  on  being  asked 
what  their  business  was,  and  answering  m  a  suspicious  manner,  were,  icith- 
out  further  provocation,  fired  on  from  the  house,  and  after  returning  the  fire, 
they  were  fired  on  by  the  negroes  from  the  adjoining  buildings.  Bemg 
thus  unexpectedly  attacked  m  flank,  they  retired." 


CIIAl'TKR    IV. 


93 


with  instructions  from  the  committee  of  three,  opened  a  parlej 
with   the  beleaguered   regulars,  demanding  the  surrender  of 
Neville ;  being  informed  of  the  inspector's  escape,  he  next 
proposed  that  six  of  his  men  be  admitted  to  the  house  for  the 
purpose  of  a   search,  the   object  of  which  was  said  to  be  Ne- 
ville's commission  and  the  documents  relating  to  the  prosecu- 
tion of  delinquent   distillers.     Upon  Fitzpatrick's  refusal  to 
accede  to  this  demand,  McFarlane  sent  notice  for  the  women 
of  Neville's   household   to  leave   the  premises.     This  having 
been  done,  the  insurgents  at  once  began  firing.     The  very  un- 
equal combat  lasted  but  a  short  time ;  McFarlane  having  been 
killed,  the  mob  became  infuriated,  and  setting  fire  to  the  out- 
houses, compelled  the   intrepid   little  garrison  to  surrender. 
The  eleven  men,  three  of  whom  had  been  wounded  during  the 
brief  struggle,  were  dismissed.     At  this  juncture  the  marshal 
and  Neville's  son  came  upon  the  scene,  and  were  immediately 
seized  by  the  mob  ;  the  former  would  undoubtedly  have  been 
killed,  had  he  not  promised  to  relinquish  the  task  he  had  un- 
dertaken and   to  refrain  from   serving  processes  west   of  the 
mountains.     The  inspector's  residence  was  entirely  consumed 
by  fire.     General  Neville  and  the  marshal,  who  had  escaped  to 
Pittsburgh,  found  little  safety  there  ;  on  the  following  day  the 
rioters  demanded  of  the  former  that  he  resign  his  oflice,  of  the 
latter,  that  he  surrender  all  warrants  in  his  possession.     Un- 
willing to  comply  with  these  requirements  of  their  personal 
safety,  and   aware  of  the  consequences  of  a  refusal,  the   two 
ofiicers  descended  the  Ohio  river  as  far  as  Marietta,  and  thence 
made  their  way  to  Philadelphia,  the  seat  of  Government. 

Flushed  with  victory,  the  leaders  of  the  riot  at  once  took 
steps  for  the  raising  of  a  still  greater  military  force.  A  public 
meeting,  appointed,  it  is  said,  at  the  funeral  of  McP'arlane, 
was  held  at  Mingo  Creek,  July  23d';  Bradford,  prosecuting 
attorney  for  the  District,  the  most  violent  of  the  excise  rioters, 
delivered  a  brutal  speech  in  which  he  urged  continued  resist- 


94  LIQUOK    LAWS    OF   THE    UNITED    STATES. 

ance,  and  the  arming  of  all  able  bodied  men  of  the  western  coun- 
ties, with  the  design  of  marching  upon  Philadelphia.  Brack- 
enridge,  a  prominent  lawyer  of  Pittsburg,  who  has  left  us  a 
history  of  the  insurrection,  opposed  Bradford's  wild  scheme ; 
he  succeeded  in  shaking  the  bitter  determination  of  the 
Bradford  faction,  and  the  result  was  that  no  definite 
action  was  taken,  save  the  calling  of  a  convention  of 
delegates  from  the  townships  of  the  western  counties 
of  Pennsylvania  and  the  neighboring  counties  of  Yirginia, 
to  meet  on  the  IMh  day  of  August,  1794,  at  Parkison's 
Ferry,  on  the  Monongahela,  The  object  of  the  convention 
was  to  have  been  "  a  consideration  of  the  situation,"  and  it  may 
be,  as  the  apologists  of  the  insurrection  subsequently  claimed, 
that  the  submission  of  the  revolting  counties  was  contemplated 
by  many  of  the  rioters.  ♦  If  such  was  the  intention,  Bradford 
took  unusual  precaution  to  frustrate  it. 

By  an  arrogation  of  power  he  assumed  the  right  vested  in 
the  directoire,  i.  e.,  the  committee  of  three,  appointed  on  the 
17th  of  July,  and  undertook  to  guide  the  movement.  His  first  act 
was  the  robbmg  of  the  western  mail  on  the  post-road  between 
Greensburgh  and  Pittsburgh.  Pretending  to  have  discovered 
secret  plans  detrimental  to  the  interest  of  the  good  people  of 
western  Pennsylvania,  this  self-created  dictator  sent  to  militia 
officers  the  following  circular,  dated  Cannonsburgh,and  signed 
by  himself,  A.  Fulton,  J.  Cannon,  B.  Parkison,  T.  Speers,  I. 
Lowry  and  J.  Marshall :  "  Having  had  suspicions  that  the 
Pittsburgh  post  would  carry  with  him  the  sentiments  of  some 
of  the  people  m  the  country,  respecting  our  present  alarming 
situation ;  and  the  letters  by  the  post  being  now  m  our  posses- 
sion, by  which  certain  secrets  are  discovered  hostile  to  our 
interest,  it  is  therefore  now  come  to  that  crisis,  that  every 
citizen  must  express  his  sentiments  not  by  his  words  but  his 
actions.  You  are  then  called  on,  as  a  citizen  of  the  western 
country,  to  render  your  personal  service,  with  as  many  volun- 


CHAPTER    IV.  95 

teers  as  you  can  raise,  to  rendezvous  at  your  usual  place  of 
meeting  on  Wednesday  next ;  and  from  thence  you  will  march 
to  the  usual  place  of  rendezvous  at  Braddock's  Field,  on  the 
Monongahela,  on  the  first  of  August  next,  to  be  there  at  two 
o'clock  in  the  afternoon,  with  arms  and  accoutrements  in  good 
order.  Here,  sir,  an  expedition  is  proposed,  in  which  you  will 
have  an  opportunity  of  displaying  your  military  talents,  and  of 
rendering  service  to  your  country." 

On  the  day  appointed  seven  thousand  armed  men  gathered 
on  Braddock's  Field ;  among  the  multitude  were  Ross,  United 
States  Senator,  Col.  Cook,  one  of  the  judges  of  Fayette  county, 
and  Albert  Gallatin,  who  in  1793  was  declared  ineligible  to  a 
seat  in  the  United  States  Senate,  to  which  he  had  been  elected 
by  the  Pennsylvania  Legislature.*  Bradford  created  himself 
major-general,  and  in  this  capacity  reviewed  the  troops.  The 
army,  resolving  itself  into  a  deliberative  body,  of  which  Cook 
was  chairman  and  Gallatin  secretary,  appointed  a  committee 
for  the  conduct  of  the  enterprise,  and  this  Direetory  ordered 
that,  in  addition  to  a  number  of  men  already  banished  because 
their  letters,  which  had  been  opened  by  Bradford,  contained 
expressions  of  loyal  sentiments,  two  more  citizens  of  Pitts- 
burgh should  be  expelled.  Bradford,  idolized  by  his  support- 
ers and  feared  by  all,  marched  his  army  to  Pittsburgh,  where 
a  seemingly  hearty  welcome  was  given  to  the  rioters.  After  an 
improvised  repast  a  great  number  of  men  went  to  their  homes, 
but  those  bent  upon  mischief  remained  in  town,  under  Brad- 
ford's command,  and  during  the  night  burned  a  bam  belonging 
to  Major  Fitzpatrick. 

That  the  expulsion  of  two  citizens  could  not  have  been  the 
real  object  of  the  march  upon  Pittsburg  is   obvious  enough ; 

*  By  a  vote  of  fourteen  to  twelve,  tlie  Senate,  sitting  for  the  first  time 
with  open  doors,  decided  that  Gallatin,  a  Swiss  by  birth,  had  not  been  a 
citizen  of  the  United  Statics  sufHcier,  ;ly  lonj?  to  entitle  him  to  a  seat. 


06  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

in  reality,  Bradford  bad  hoped  that  be  could  induce  tbe  mili- 
tia officers  to  seize  Fort  Pitt  by  force  of  arms,  and  thus  obtain 
possession  of  tbe  arms  and  munition  stored  in  its  arsenal.  His 
ulterior  scbeme  seems  to  bave  been  a  secession  of  tbe  western 
counties.  His  immediate  plan  was  frustrated,  however,  by  the 
good  sense  of  a  majority  of  the  militia  officers ;  but  he  still 
retained  power  over  a  large  body  of  rioters,  and  coirtinued  to 
perpetrate  horrible  outrages ;  driving  from  tlie  counties  not 
only  all  Federal  officers,  save  the  military,  but  also  all  well-dis- 
posed citizens. 

It  was  a  critical  moment  in  Washington's  administration, 
when — seeing  the  authority  of  the  Government  successfully 
defied  in  one  part  of  the  country,  and  a  spirit  of  resistance, 
rekindled  by  the  French  faction,  spreading  throughout  the 
land — he  felt  compelled  to  resort  to  an  exercise  of  the  powers 
vested  in  him  by  the  Militia  Law.*  Mifflin,  governor  of  Penn- 
sylvaniajhaving  shown  a  disinclination  to  call  out  the  militia  of 
his  State,  on  the  ground  that  such  a  course  might  increase  the 
opposition  to  such  an  extent  as  to  necessitate  the  employment 
of  troops  from  the  adjoining  States — an  event  which  he  feared 
would  result  in  a  general  war — Washington  resolved  to  make 
use  of  his  power.  In  accordance  with  the  law  providing  for 
the  calling  out  of  the  militia,  he  submitted  a  statement  of  the 
disturbances  to  a  judge  of  the  Supreme  Court,  who  gave  a  cer- 
tificate to  the  effect,  that  the  execution  of  the  laws  of  the 
United  States  was  obstructed  by  combinations  too  powerful  to 
be  suppressed  by  the  ordinary  course  of  judicial  proceedings. 
The  question  of  issuing  a  proclamation  was  now  discussed  by 
the  cabinet,  all  the  members,  with  the  exception  of  Randolph, 


*  The  perilousness  of  the  situation  was  greater,  in  the  eyes  of  the  Pre- 
sident and  his  cabinet,  than  would  appear  from  the  above  narrative.  In 
Hildreth's  history  (vol.  iv.,  p.  503)  we  read  :  With  the  arrival  of  news  of 
the  great  triumphs  achieved  by  the  French  arms,  and  of  the  subsidence  of 
internal   revolt  under   the   terrible   discipline   of  the  Reign  of  Terror,  the 


cnAPTr.R  IV. 


coinciding  with  the  President  in  the  conviction  that  "the 
Government  could  no  longer  remain  a  passive  spectator  of  the 
contempt  with  which  the  laws  were  treated."  Eandolph,  who 
had  succeeded  Jefferson  in  the  office  of  Secretary  of  State, 
opposed  the  calling  out  of  the  militia  for  various  reasons.  He 
doubted  the  legality  of  the  measure  as  well  as  its  expediency; 
among  his  reasons  was  the  danger,  if  the  insurgents  accepted 
the  aid  of  the  British,  that  the  western  army  would  he  des- 
troyed and  that  a  severance  of  the  Union  and  a  British  war 
would  be  the  consequence.  The  subsequent  disclosure  of 
Randolph's  intercourse  with  the  French  ambassador,  Fauchet, 
and  the  publication  of  the  dispatches  the  latter  sent  to  his 
government,  prove  that  the  fear  of  a  severance  of  the  Union 
was  not  without  foundation.  (See  Appendix.)  In  a  letter  of 
Brackenridge  addressed  under  date  of  August  8, 1794,  to  Tench 
Coxe,  and  by  him  submitted  to  the  Cabinet,  it  was  stated  that 
in  case  of  a  military  force  being  sent  against  the  insurgents, 
the  first   measure  of   the  latter  would  be   the   organization 

Democratic  societies,  recovering  from  the  temporary  check  growing  out  of 
the  conduct  of  Genet  and  the  disasters  of  the  French  Kepublic,  had  become 
more  vigorous  and  violent  than  ever,  and  very  unsparing  in  the  attacks 
upon  the  policy  of  the  federal  administration.  The  Charleston  society,  on 
their  own  application  had  been  recognized  by  the  Jacobin  Club  of  Paris  as 
an  affiliated  branch.  The  Democratic  Society  of  Washington  county,  one 
of  those  involved  in  the  present  disturbance  (excise  riots),  had  passed  strong 
resolutions,  copied  from  those  of  Kentucky,  on  the  subject  of  the  naviga- 
tion of  the  Mississippi.  The  French  agents  were  still  active  in  Kentucky, 
and  a  secret  understanding  was  suspected  between  all  these  parties.  The 
Democratic  society  of  Philadelphia  hastened  indeed  to  pass  resolutions,  in 
which,  after  execrating  the  excise  law,  they  declared,  however,  their  disap- 
proval  of  \iolent  resistance.  But  no  great  faith  was  placed  in  their  sin- 
cerity, or  in  the  concurrence  of  the  affiliated  branches.  In  a  contemporary 
letter  to  Governor  Lee,  of  Virginia,  Washington  speaks  of  the  leaders  of 
these  societies  as  artful  and  designing  men,  whose  great  object  was,  under  a 
display  of  popular  and  fascinating  guises,  to  destroy  all  confidence  in  the 
administration,  and  likely,  if  not  counteracted  and  their  character  exposed, 
to  shake  the  government  to  its  foundation. 


98  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

of  a  new  government  comprehending  the  three  Virginia  coun- 
ties, and  those  of  Pennsylvania  to  the  westward.  ''  Should  an 
attempt  be  made,"  Brackenridge  continued,  "  to  suppress  these 
people,  I  am  afraid  the  question  will  not  be,  whether  you  will 
march  to  Pittsburgh,  but  tohether  they  will  march  to  Phila- 
delphia^ accumulating  in  their  course,  and  swelling  over  the 
banks  of  the  Susquehanna  like  a  torrent — irresistible  and  de- 
vouring in  its  progress."  As  among  the  measures  contem- 
plated by  the  insurgents,  Brackenridge  mentions  an  applica- 
tion for  aid  to  the  British. 

Eandolph  clearly  misunderstood  Washington's  character  if  he 
thought  that  these  and  similar  considerations  could  change  the 
course  of  action  proposed.  Indeed  it  was  to  be  expected  that 
these  very  reasons  would  confirm  him  in  his  purpose  of  using 
the  radical  measures  which  a  crisis  of  such  a  character  impera- 
tively demands.  The  President  and  his  cabinet  persevered  in 
their  purpose,  and  accordingly  on  the  7th  day  of  August,  the 
following  proclamation  was  issued  : 

Whereas,  combinations  to  defeat  the  execution  of  the  laws  laying 
duties  upon  spirits  distilled  within  the  United  States,  and  upon  stills, 
have,  from  the  time  of  the  commencement  of  these  laws,  existed  in  some 
of  the  western  Counties  of  Pennsylvania :  and  whereas,  the  said  combi- 
nations, proceeding  in  a  manner  subversive  equally  of  the  just  authority  of 
government  and  of  the  rights  of  individuals,  have  hitherto  effected  their 
dangerous  and  criminal  purpose,  by  the  influence  of  certain  irregular  meet- 
ings whose  proceedings  have  tended  to  encourage  and  uphold  the  spirit  of 
opposition  by  mis-representations  of  the  law,  calculated  to  render  them 
odious,  by  endeavors  to  deter  those  who  might  be  so  disposed  from  accept- 
ing oflSce  under  them,  through  fear  of  public  resentment,  and  of  injury  of 
person  and  property  ;  and  to  compel  those  who  had  accepted  such  offices,  by 
actual  violence  to  surrender  or  forbear  the  execution  of  them  :  by  circulat- 
ing vindictive  menaces  against  all  those  who  should  otherwise  directly  or 
indirectly  aid  in  the  execution  of  the  said  laws,  or  who,  yielding  to  the  dic- 
tates of  conscience  and  to  a  sense  of  obligation,  should  themselves  comply 
therewith  ;  by  actually  injuring  and  destroying  the  property  of  persons  who 
were  understood  to  have  complied  ;  by  inflicting  cruel  and  humiliating 
punishment  upon  private  citizens,  for  no  other  cause  than  that  of  appear- 


CHAPTER   TV. 


99 


ing  to   be  friends  of  the  laws  ;  by  intercepting  tlie   public  officers  on  tbe 
high  wars,  abusing,  assaulting,  and  otherwise  ill-treating  them;   by  going 
to  their  houses  in  the  night,  gaining  admittance  by  force,  taking  away  their 
papers,  and  committing  other  outrages  ■  employing  for  these  unwarrantable 
purposes  the  agency  of  armed  banditti,  disguised  in  such  manner  as  for  the 
most  part  to  escape  discovery  ;  and  whereas,  the  endeavors  of  the  legisla- 
ture to  obviate  objections  to  said  laws,  by  lowering  the  duties,  and  by  other 
alterations  conducive  to  the  convenience  of  those  whom  they  immediately 
affect  (though  they  have  given  satisfaction  in  other  quarters),  and  the  en- 
deavors of  the  executive  officers  to  conciliate  a  compliance  with  the  laws, 
by   explanations,   forbearance,  and    even  by   particular    accommodations, 
founded  on  the  suggestions  of  local  considerations,  have  been  disappointed 
of  their  effect  by  the  machinations  of  persons,  whose  industry  to  excite 
resistance  has  increased  with  every  appearance  of  a  disposition  among  the 
people  to  relax  their  opposition  and  to  acquiesce  in  the  laws,  inasmuch  that 
many  persons  in  said  western   part  of  Pennsylvania  have  at  length  been 
hardy  enough  to   perpetrate  acts  which   I   am   advised  amount  to  treason, 
being  overt  acts  of  levying  war  against  the  United  States,  the  said  persons 
having  on  the  16th  and  17th  of  July  last,  proceeded  in  arms  (on  the  second 
day  amounting  to  several  hundred)  to  the  house  of  John  Neville,  inspector 
of  the  revenue  for  the  fourth  survey  of  the  district  of  Pennsylvania,  hav- 
ing repeatedly  attacked  the  said  house,  with  the  persons  therein,  wounding 
some  of  them  ;  having   seized  David    Lenox,  marshal  of    ihe   district   of 
Pennsylvania,  who  previous  thereto  had  been  fired  upon  while  in  the  execu- 
tion of  his  duty  by  a  party  of  armed  men,  detaining  him  for  some  time  pri- 
soner, till,  for  the  preservation  of  his  life,  and  the  obtaining  of  his  liberty, 
he  found  it  necessary  to  enter  into  stipulations  to  forbear  the  execution  of 
certain  official  duties  touching  processes  issuing  out  of  a  court  of  the  United 
States  ;  and  having  finally  obliged  the  said  inspector  of  revenue  and  the 
said  marshal,  from  considerations  of  personal  safety,  to  fly  from  that   part 
of  the  country,  in  order,  by  a  circuitous  route,  to  proceed  to  the  seat  of 
government;  avowing,  as  the  motives  of  these  outrageous  proceedings,  an 
intention  to  prevent  by  force  of  arms  the  execution  of  the  said  laws  ;  to 
withstand  by  open  violence,  the  lawful  authority  of   the  government  of 
the  United  States  ;  and  to  compel  thereby  an  alteration  in  the  measures  of 
the  legislature,  and   a  repeal  of  the   laws  aforesaid.     [Here  the  President 
quoted  the  act  to  provide  for  calling  forth  the  militia.]     And  whereas  it  is 
in  my  judgment  necessary,  under  the  circumstances  of  the  case,  to  take 
measures  for  calling  forth  the  militia — in  order  to  suppress  the  combinations 
aforesaid,  and  to  cause  the  laws  to  be  duly  executed,  I  have  accordingly 
determined  to  do  so,  feeling  the  deepest  regret  for  the  occasion,  but  withal 
the  most  solemn  conviction  that  the  essential  interests  of  the  Union  demand 


100  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

it,  that  tlie  verj-  existence  of  government  and  the  fundamental  principles  of 
gocial  order  are  materially  involved  in  the  issue,  and  that  the  patriotism 
and  firmness  of  all  good  citizens  are  seriously  called  upon,  as  occasions 
may  require,  to  aid  in  the  effectual  suppression  of  so  fatal  a  spirit. 

Wherefoke,  I,  George  Washington,  President  of  the  United  States, 
do  hereby  command  all  persons,  being  insurgents  as  aforesaid,  and  all  others 
whom  it  may  concern,  on  or  before  the  first  day  of  September  next,  to  dis- 
perse and  retire  peaceably  to  their  respective  abodes.  And  I  do  moreover 
warn  all  persons  whatsoever  against  aiding,  abetting  or  comforting  the 
perpetrators  of  the  aforesaid  treasonable  acts ;  and  do  require  all  officers 
and  other  citizens,  according  to  their  respective  duties,  and  the  laws  of  the 
laud,  to  exert  their  utmost  endeavors  to  prevent  and  suppress  such  danger- 
ous proceedings. 

As  Governor  Mifflin  had  officially  expressed  the  opinion 
that  the  Pennsylvania  militia  alone  would  not  be  able  to  cope 
with  the  insurgents  (Randolph  opined  that  the  four  counties 
could  easily  muster  fifteen  thousand  men)  it  was  resolved  to 
call  out  thirteen  thousand  men  (afterwards  raised  to  fifteen 
thousand)  ;  and  a  requisition  was  accordingly  made  upon 
Pennsylvania,  Yirginia,  Maryland  aud  New  Jersey  for  their 
quota  of  this  force.  On  the  first  day  of  September  (1794)  the 
troops  were  to  be  ready  for  marching  orders. 

Alarmed  at  the  turn  affairs  had  taken,  Governor  Mifflin, 
after  a  previous  interview  with  the  President,  addressed  to  the 
latter  a  letter  deprecating  the  measures  contemplated  and  sug- 
gesting others  in  their  stead.  In  reply  to  this,  Washington 
directed  Hamilton  to  write  a  letter  expressing  the  President's 
regret  at  the  possible  necessity  of  an  appeal  to  arms  and  his 
willingness  to  make  one  more  attempt  to  avert  that  necessity, 
"To  manifest  his  attention  to  the  principle  that  a  firm  and 
energetic  conduct  does  not  preclude  the  exercise  of  a  prudent 
and  humane  policy,  he  [the  President]  concluded  upon 
the  measure  of  sending  Commissioners  to  the  discontented 
counties,  to  make  one  more  experiment  of  a  conciliatory  appeal 
to  the  reason,  virtue  and  patriotism  of  their  inhabitants,  and 
has  also  signified  to  you  how  agreeable  would  be  to  him  your 


cnAPTE:R  IV.  101 

co-operation  in  the  same  expedient."  Upon  this,  Mifflin  issued 
two  proclamations,  one  calling  out  the  militia,  and  the  other 
commanding  the  insurgents  to  disperse;  he  also  appointed 
Chief  Justice  McKean  and  General  Irving  commissioners  to 
act  jointly,  with  the  peace  commission  appointed  by  the  Presi- 
dent, which  consisted  of  three  Pennsylvanians,  viz :  Senator 
Ross,  U.  S.  Attorney  General  Bradford,  and  Yates,  one  of  the 
judges  of  the  Supreme  Court  of  Pennsylvania. 

While  these  pacific  measures  were  carried  out  and  the  pre- 
parations for  the  employment  of  force  were  being  pushed  by 
the  government  with  energy,  and  soon  responded  to,  with  un- 
looked  for  enthusiasm,  by  the  loyal  population,  the  insurgents 
remained  not  idle.  They  made  repeated  expeditions  into  the 
adjacent  counties  of  Virginia  and  Maryland,  spreading  discon- 
tent and  kindling  a  martial  spirit  far  and  near.  On  the  day 
appointed  for  the  meeting  at  Parkison's  Ferry  [Aug.  14,] 
two  hundred  delegates  met,  representing  the  four  disaffected 
Pennsylvania  counties,  and  two  counties  of  Yirginia.  The  de- 
legates assembled  in  a  grove  on  an  eminence  commanding  a 
view  of  the  Monongahela  river.  In  the  morning  an  organiza- 
tion was  effected  by  the  election  of  Cook  as  chairman  and  Gal- 
latin as  secretary.  Two  resolutions  were  offered  and  discussed 
— one  appointing  a  "  Committee  of  Public  Safety,"  to  consist 
of  sixty  member  ,  whose  proposed  duty  was  defined  in  these 
words : "  to  call  forth  the  resources  of  the  western  country, 
to  repel  any  attempts  that  might  be  made  against  the  rights 
of  the  citizens,  or  of  the  body  of  the  people ; "  the  other  de- 
clared against  the  taking  of  citizens  from  the  vicinity  for  trial. 
At  this  juncture  the  arrival  of  the  two  commissions,  and 
the  object  of  their  coming  were  announced,  and  it  seems 
that  this  event  changed  the  drift  of  affairs.  Gallatin  exerted 
what  influence  he  possessed  in  order  to  avoid  an  open  conflict ; 
he  argued  in  favor  of  more  moderate  language  than  that  pro- 
posed, and  endeavored,  successfully,  to  have  all  utterances  of  a 


102  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

revolutionar}^  character  stricken  out  of  the  resolutions,  and  a 
promise  inserted  to  submit  to  municipal  laws.*  It  was  finally 
agreed  to  appoint  a  committee  of  sixty,  with  power  to  call 
another  meeting,  and  a  second  committee  of  fifteen  to  meet  and 
negotiate  with  the  two  commissions. 

A  meeting  of  the  latter  committee  with  the  commissioners 
took  place  at  Pittsburgh,  on  the  21st  of  August,  when  the  com- 
missioners, at  the  request  of  the  insurgents'  representatives,  for- 
mulated an  ultimatum  to  the  effect  that  the  committee  on  behalf 
of  their  constituents  explicitly  declare  their  determination  to 
submit  to  the  laws  of  the  United  States,  and  neither  directly  nor 
indirectly  to  oppose  the  execution  of  the  excise  law ;  that  they 
recommend  entire  obedience  to  the  law  and  a  discontinuation 
of  all  violence ;  that  they  take  measures  to  ascertain  the  sense 
of  the  people,  and  furnish  on  or  before  the  14th  of  Septem- 
ber satisfactory  assurance  of  a  pacific  disposition  of  the  inhab- 
itants of  the  disaffected  counties.  The  commissioners  on  their 
part  promised  that  in  the  event  of  a  ready  compliance  with 
these  stipulations  a  term  of  probation,  extending  to  the  10th 
of  July,  1795,  would  be  granted,  during  which  no  prosecutions 
would  be  commenced  ;  and  in  the  case  of  entire  obedience  to 
the  laws  during  this  probationary  term,  a  general  pardon  would 
be  given.  Willing  to  accept  these  terms,  the  committee  to 
which  belonged  Gallatin,  Marshal, Bradford,  Brackenridge  and 
Cook— all  of  whom,  excepting  Bradford,  were  disposed  to  adopt 
conciliatory  means — requested  time  to  consult  the  committee  of 

*  J.  C.  Hamilton  says  :  "  Gallatin  now  felt  that  they  were  on  the  verge 
of  an  abyss.  Resolves  would  not  stand  the  test  of  resolution.  The  oppres- 
sion of  the  poor  by  excises  was  no  more  thought  of.  '  Legal  measures  for 
obstructing  the  operation  of  the  law,'  it  was  feared  would  not  stand  the 
test  of  justice— sternly  pointing  to  a  prison  and  the  gibbet."  (Vol.  vi.,  p.  94) 
Hildreth  says  :  "  There  were  many  persons  present  whose  object,  like  Gal- 
latin's, it  was  to  extricate  the  people  from  the  disastrous  consequences  of  a 
violent  opposition  to  the  law,  which  they  themselves  had  done  much  to 
stimulate."     History  of  the  United  States,  vol   iv.,  p.  506. 


CHAPTEK    IV  103 

sixty.  But  their  ready  acquiescence  only  irritated  the  Brad- 
ford wing,  now  impatient  of  delay  and  sanguine  of  the  success 
of  open  resistance.  A  letter  signed  by  Tom  the  Tinker  and 
accusing  the  committee  of  having  sold  out  the  insurgents,  was 
published  in  the  Pittsburgh  Gazette,  and  made  a  very  deep  im- 
])ression  on  the  insurgents.  The  result  was  that,  vt^hen  the 
Committee  of  Public  Safety  met  at  Red  Stone  Old  Fort,  to 
discuss  the  stipulations  of  the  ultmiatuTn^  a  party  of  armed 
rioters,  displaying  a  menacing  front,  entered  the  town,  and  so 
intimidated  those  who  were  disposed  to  submit,  that  Gallatin, 
justly  fearing  the  miscarriage  of  his  good  intentions,  thought 
it  wise  to  move  an  adjournment  till  the  next  day.  In  spite  of 
Bradford's  opposition,  he  succeeded  in  this  as  well  as  in  his 
and  his  friends'  efforts  to  induce  the  armed  party  to  return  to 
their  homes. 

When  the  Committee  of  Public  Safety  re-assembled  on  the 
next  day,  Bradford  in  opposing  Gallatin's  arguments  in  favor 
of  submission,  openly  declared  his  conviction  that  the  insur- 
gents only  wanted  fire-arms  to  enable  them  to  defeat  the  mili- 
tia, and  establish  an  independent  state.  His  harangue  filled  the 
minds  of  the  submissive  with  grave  apprehensions  as  to  the 
prevalence  of  such  treasonable  ideas,  and  a  feeling  of  distrust 
naturally  rendered  the  wary  still  njore  cautions. 

A  viva  voce  vote  on  the  proposed  terms  seemed  too  hazard- 
ous, and  a  vote  by  ballot  was  accordingly  determined  upon.  It 
resulted  in  a  majority  of  eleven  votes  for  submission,  out  of  a 
total  of  lifty-seven. 

Thus  far  the  Committee  of  Safety  proceeded,  and  no  fur- 
ther ;  the  principal  part  of  the  stij)ulations  they  had  not  the 
courage  to  comply  with.  They,  however,  appointed  a  sub- 
committee of  nine,  to  test  the  sense  of  the  people  and  obtain 
individual  pledges  of  submission. 

On  the  first  of  September  this  sub-committee,  meeting  the 
two  commissions,  asked  for  delay  until  the  10th  of  October — 


104  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

a  proposal  which  was  peremptorily  rejected,  the  original  terms 
being  earnestly  insisted  upon  by  the  Commissioners.  On  the 
following  day  the  conf A-ees  acceded  to  the  proposition  of  tak- 
ing the  sense  of  the  people  and  rendering  a  return  of  tlie  votes 
on  the  16th  of  September.  While  in  a  few  localities  the  out- 
come of  this  arrangement  gave  promise  of  a  subsidence  of  the 
revolutionary  disposition,  in  others,  and  by  far  the  majority 
of  them,  a  direct  expression  of  sentiments  was  either  entirely 
avoided  or  assumed  a  most  threatening  character.  In  some 
cases  a  discussion  of  the  proposed  tei*ms  was  forbidden  under 
threat  of  burning  the  houses  of  the  loyal  dissenters  ;  in  others 
the  declarations  of  submission  were  torn  and  trampled  upon, 
and  again  in  others  resolutions  of  defiance  took  the  place  of 
the  proposed  vote.  So  violent  was  the  spirit  manifested  by 
the  obdurate  rioters,  that  in  some  of  the  disaffected  parts  those 
who  signified  their  submission  felt  constrained  to  form  asso- 
ciations for  common  protection.  To  the  latter  the  interven- 
tion of  the  militia  seemed  quite  as  requisite  for  their  personal 
safety  as  for  the  vindication  of  the  authority  of  government. 
Under  such  circumstances  the  Commissioners  could  not  but 
conclude  that  their  mission  of  peace  had  completely  failed, 
and  that  force  of  arms  must  be  resorted  to.  On  their  way  home 
the  two  State  Commissioners,  Judges  McKean  and  Yates,  had 
further  opportunities  of  tesfing  the  correctness  of  this  conclu- 
sion. At  Greensburg,  in  Westmoreland  County,  the  house  in 
which  they  lodged  was  attacked  by  a  mob,  who  were  only  pre- 
vented from  forcibly  gaining  access  by  a  well-directed  f usilade. 
At  Carlisle,  where  the  judges  administered  justice  in  the  cases 
of  a  number  of  persons  who,  late  in  August,  had  made  sedi- 
tious attempts  to  frustrate  the  enrolment  of  the  militia,  they 
narrowly  escaped  capture  by  a  mob  of  two  hundred  rioters. 
Arriving  in  town  after  the  departure  of  the  Commissioners,  the 
insurgents  burnt  the  judges  in  effigy.  A  riot  in  the  neighbor- 
hood of  Hagerstown  was  quickly  suppressed  by  a  detachment 


CHAPTER   IV. 


105 


of  cavalry.     Upon  receiving  the  Commissioners'  report,  Wash- 
ington, on  the  24th  day  of  September,  issued  his  third  proclama- 
tion, commanding  submission  to  the  law  and  admonishing  the 
law-breakers  of  the  consequences  of  their  revolt.     At  the  same 
time  the  preliminaries  for  an  advance  upon  the  rebel  districts 
were  perfected.    The  call  for  the  militia  had  brought  out  a  much 
larger  body  of  soldiers  than  the  requisitions  demanded.     The 
troops  of  Maryland  and  Yirginia,  led  respectively  by  Morgan 
and  Smith,  rendezvoused  at  Cumberland  ;  those  of  New  Jersey 
and  Pennsylvania,  under  command  of  the  governors  of  their 
States  [Howell  and  Mifflin],  at  Carlisle.     Forming  respectively 
the  left  and   right  wings   of  the  army,  the   former  marched 
across  the  mountains  by  Braddock's  road,  the  latter  by  the 
northern  or  Pennsylvania  road.     The  fact  that  a  large  part  of 
the  troops  was  composed  of  volunteers,  served  materially  to 
change  the  aspect  of  things,  since  it  proved  that  whatever  the 
designs   and   desires   of   the  secret  societies  may  have  been, 
they  had  not  succeeded  in  bringing  about  the  calamities  pre- 
dicted by  Eandolph  and  others.* 

On  the  30th  of  September,  Washington,  accompanied  by 
Hamilton,  proceeded  to  Carlisle,  where  he  reviewed  the  troops 
and  was  received  with  unusual  enthusiasm  by  the  citizens, 
whom  he  addressed  on  the  dangers  of  the  situation.  While 
there  he  was  called  upon  by  Findley  and  Eeddick  who,  as  the 
delegates  of  a  convention  of  citizens  held  at  Parkison's  Ferry, 
on  the  2d  of  October,  submitted  to  him  resolutions  of  submission, 
and  endeavored  to  dissuade  him  from  a  continuance  of  military 

*  Mifflin's  lukewarmness  suddenly  changed  into  an  almost  suspicious 
eagerness  to  aid  the  government,  when  the  Legislature  of  his  State,  con- 
vened in  special  session,  denounced  the  insurgents,  and,  to  obviate  difficul- 
ties said  to  have  arisen  in  drafting  the  militia,  authorized  the  enlistment  of 
volunteers,  at  the  same  time  authorizing  the  offer  of  a  bounty,  if  needed. 
Upon  this  Mifflin  made  a  tour  of  the  most  populous  counties  of  the  State  to 
raise  volunteers  displaying  a  degree  of  zeal  truly  astounding  in  the  light 
of  his  former  attitude. 


106  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

operations.  This  conveiition  marks  the  beginning  of  the  dis- 
solution of  the  rebellious  movement ;  it  was  called  after  Brad- 
ford and  other  equally  violent  leaders,  as  cowardly  as  they 
were  treacherous  and  disloyal,  had  fled  from  the  counties,  and 
when  the  rapid  approach  of  two  powerful  columns  of  loyal 
soldiers,  the  determined  attitude  of  the  Administration  and  the 
enthusiasm  of  a  vast  majority  of  the  population,  had  destroyed 
the  last  hope  of  the  insurgents.  From  Hamilton's  version  of 
Findley's  interview  with  the  President  it  would  seem,  that 
doubts  were  entertained  as  to  whether  the  resolutions  of  sub- 
mission represented  the  sentiments  of  the  mass  of  insurgents  ; 
at  all  events,  Washington,  though  he  treated  Findley  and  Red- 
dick  courteously,  did  not  allow  himself  to  be  moved  from  his 
purpose.  Findley,  who  like  Gallatin  had  but  a  short  time 
before  been  elected  to  Congress,  essayed  in  various  ways  to 
impress  the  President  with  his  popular  influence  and  his  ability 
to  make  good  his  promises,  and  failing  in  this,  he  went  so  far  as 
to  offer  his  services  in  capturing  offenders.  N^o  wonder  that  his 
importunate  conduct  aroused  suspicion.  lie  was  finally  told 
that  the  advance  of  the  troops  would  not  be  interrupted,  un- 
less more  trustworthy  evidences  of  submission  were  offered. 
He  and  Reddick  thereupon  returned  to  their  homes,  intending 
to  procure  the  required  evidences. 

At  a  third  meeting  held  at  Parkison's  Ferry,  on  the  24th 
of  October,  and  of  which  Gallatin  again  acted  as  secretary, 
resolutions  were  passed  fully  in  accord  with,  and  in  some 
points  even  exceeding,  the  terms  proposed  by  the  joint  com- 
mission, before  the  movement  of  the  troops.  It  was  declared 
that  ''  the  civil  authority  was  competent  to  enforce  laws  and 
to  punish  both  past  and  present  offences,  as  the  people  were 
determined  to  support  every  description  of  civil  officers  in  the 
discharge  of  their  duty ;  and  that  the  offices  of  inspection 
might  immediately  be  opened."  Summoning  all  delinquents, 
who  had  not  secured  impunity  by  timely  submission,  to  sur- 


CHAPTER  rv.  107 

render  for  trial,  the  delegates  to  the  meeting  further  pledged 
themselves  "  to  unite  in  giving  assistance  to  bring  to  justice 
such  offenders  as  shall  not  surrender."     When  Findley  and  his 
brother  delegates,  Ecddick,  Douglass  and  Morgan,  empowered 
to  present  these  resolutions,  reached  Uniontown,  in  Fayette 
county,  where  a  junction  of  the  two  wings  of  the  army  had 
been   effected,  Washington   had   already   returned   to  Phila- 
delphia, after  having  again  reviewed  the  troops — the  Virginia 
and  Maryland  militia  at  Cumberland,  the  Pennsylvania  and 
New  Jersey  quota  at  Bedford.     Governor  Lee  was  now  in  chief 
command  of  the  troops,  and  Hamilton  represented  the  President 
on  the  held  of  action.     Both  received  the  delegates  of  the  Park- 
ison's  Ferry  convention  courteously,  and  Lee  issued  a  friendly 
address  to  the  people,  in  reply  to  pacific  assurances,  urging 
the  well-disposed  to  persevere  in  their  laudable  course.     How- 
ever o-ratifying  these  symptoms  of  a  re-awakened  sense  of  duty 
may  have  been,  they  could  not  bring  the  advancing  columns 
to  a  halt.     According  to  the  admission  of  one  of  Findley 's 
colleagues,  there  were  still  many  "  young  headstrong  boys  who 
had  got  arms  in  their  hands,  unwilling  to  give  assurance  of 
submission,"  and  that  they  probably  would  remain  recalcitrant 
"  until  convinced  the  army  was  approaching,"     Accordingly, 
Governor  Lee  marched  further  into  the   disaffected  survey, 
reaching  Parkison's  Ferry,  on  the  8th  of  November,  without 
having   encountered   armed  opjposition   at  any  stage   of   his 
aggressive   movement.     Forsaken  by  those  leaders  who  had 
urged  them  to  take  up  arms,  the  misguided  rioters  fled  to  their 
homes  at  the  approach  of  the  army — and  thus  order  and  peace 
were  re-established,  ere  a  blow  had  been  struck.     On  the  day  of 
his  arrival    at  Parkison's  Ferry,  Lee  issued  a    proclamation 
granting   the   amnesty  previously  offered  to   those  who  had 
accepted  the  terms  of  the  peace  commissions,  and  calling  upon 
the  people  to  take  the  oath  of  allegiance  to  the  United  States, 
which  was  m  the  form  of  tlie  pledge  exacted  by  the  ultimatum^ 


108  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

being  a  solemn  promise,  henceforth  to  submit  to  the  laws  of 
the  United  States;  to  abstain  from  directly  or  indirectly  oppos- 
ing the  execution  of  the  act  for  raising  a  revenue  on  distilled 
spirits  and  stills ;  to  support  the  civil  authorities,  and  to  afford 
protection  to  all  officers  and  other  citizens.  Under  instruc- 
tions from  Governor  Lee,  a  number  of  arrests  were  then  made 
in  the  four  counties,  the  prisoners  being  turned  over  to  the 
civil  authorities  for  trial.  After  a  few  days,  tranquility  hav- 
ing been  entirely  restored,  the  troops,  excepting  a  corps  of 
observation  ot  250C  men  under  Morgan,  were  sent  to  their 
homes,  and  thus  the  Whiskey  Insurrection  ended. 


CHAPTER  Y. 

PERFECTING   THE  REVENUE  SERVICE  ;    NUMBER  AND  COMPENSATION 

OF  OFFICERS. LICENSES  TO  RETAILERS  OF  SPIRITS  AND  WINES. 

MODIFICATIONS    OF    THE    EXCISE    LAW  IN    FAVOR    OF  COUNTRY 

DISTILLERS. REPEAL     OF    INTERNAL  DUTIES  ;      ITS  CAUSES. 

EFFECTS  OF  THE  VARIOUS  LAWS  ON  THE  INTERNAL  TAXATION 
OF  DISTILLED  SPIRITS. COMPARATIVE  TABLE  SHOWING  PRO- 
DUCTION, IMPORTS,  EXPORTS  AND  CONSUMPTION  OF  SPIRITS 
DURING  THE  OPERATION  OF  THE  EXCISE  LAW,  AND  AFTER  FTS 
REPEAL,  UP  TO  1810. EFFECT  OF  IMPORT  DUTIES  UPON  FER- 
MENTED LIQUORS. STATE   OF  VINE-CULTURE. THE    BREWING 

INDUSTRY  IN  1810;    DIFFICULTIES    RETARDING  ITS  PROGRESS. 

It  remains  to  be  stated  that  before  the  bloodless  suppres- 
sion of  the  Whiskey  Insurrection  had  been  effected,  a  number 
of  circumstances,  other  than  the  popular  prejudice,  and  the 
timidity  and  reluctance  of  excise-officers,  conspired  to  render 
the  collection  of  taxes  extremely  difficult,  even  in  States  where 
tlie  Federal  administration  generally  iopnd  hearty  support. 
Prominent  among  these  were:  the  inevitable  imperfections  of 
the  system,  growing  out  of  the  experimental  character  of  the 
institution  ;  the  insufficiency  of  the  number  of  officers,  and  the 
want  of  adequate  compensation  for  excise-services.  When 
Congress,  intent  upon  avoiding  the  imposition  of  direct  taxes,* 
by  the  Act  of  June  5,  1794,  still  further  extended  the  system 
of  internal  taxation,  by  imposing  duties  upon  carriages  for  the 
conveyance  of  persons,  upon  auction  sales,  snuff  and  snuff- 
mills,  refined  sugar,  and  upon  the  retailing  of  wine  and  foreign 

*  In  1794,  the  special  committee  on  public  credit  recommended  the  rais- 
ing of  $750,000  by  direct  taxation— a  recommendation  wliicli  was  promptly 
rejected. 


110  LIQUOR   LAWS    OF   THE    UNITED    STATES. 

spirituous  liquors,  it   became   absolutely   necessary   to   adopt 
measures  calculated  to  remove  the  difficulties  before  mentioned; 
and  this  was  accomplished  by  an  act,  approved  June  5,  1794, 
making  further  provisions  for  the  collecting  of  duties  on  foreign 
and  domestic  distilled  spirits,  wines  and  teas.     This  act  author- 
ized the  President  to  establish  new  districts  and  surveys,  make 
such  alterations  in,  and  additions  to,  those  already  existing,  and 
appoint  as  many  additional  officers  as  to  him  appeared  expe- 
dient and  necessary.     By  virtue  of  this  law  the  President,  un- 
der date  of  April  9th,  1Y95,  re-organized  and  perfected  the 
revenue-establishment  by  forming  new,  and  altering  old,  sur- 
veys ;  by  appointing  additional  officers  and   increasing  their 
compensation.     The  annual  salaries  of  supervisors,  of  whom 
there  still  was  one  in  each  State  and  Territory,  were  fixed  at 
from  five  hundred  to  thirteen  hundred  and  fifty  dollars ;  in 
addition  to  which  sums,  these  officers  were  allowed  a  commis- 
sion at  a  certain  per  cent,  of  the  gross  revenue  in  their  several 
districts,  and  a  fee  for  certain  duties  connected  with  their  offi- 
ces.    Inspectors  were  allowed  an  annual  salary  of  from  four 
hundred  and  fifty  to  five  hundred  dollars  in  addition  to  certain 
commissions   and  fees ;  while  the  compensation  of  collectors 
consisted  entirely  of  such  commissions  and  fees.*     The  entire 
service,  in  1796,  consisted  of  sixteen  supervisors,t  twenty-two 
inspectors  of  surveys,  two  hundred  and  thirty-six  collectors, 
and    sixty-three    auxiliary    officers;    the   total    compensation 
amounted  to  a  little  less  than  seventy-eight  thousand  dollars. 

After  the  re-organization  of  the  service  the  collection  of 
internal  taxes  went  on  smoothly,  ij:     The  tax  imposed  upon  the 


*  Subsequently  an  increase  of  compensation  became  necessary,  and  was 
again  effected. 

f  Vermont  bad  been  admitted,  and  Obio  and  Tennessee,  constituted  as 
territories,  were  given  one  supervisor  eacb. 

jj.  Tbe  tax  upon  conveyances  was  assailed  on  tbe  ground  of  inconstitu- 
tionality,  but  by  tbe  decision  of  tbe  Supreme  Court  in  tbe  case  of  Hylton  vs. 
tbe  United  States  (3  Dall.,  171),  was  declared  constitutional. 


CHAPTER   V.  Ill 

retailing  of  wines  and  si3iritnous  liquors  was  in  the  form  of  a 
yearly  license  of  five  dollars,  issued  by  the  supervisors  of  reve- 
nue to  retail  merchants,  *'.  6.  to  every  person  engaged  in  selling 
wine  and  foreign  spirits  (to  be  sent  out  of  his  place  of  busi- 
ness), in  a  less  quantity,  at  one  time,  than  thirty  gallons  of  the 
former,  and  twenty  gallons  of  the  latter  liquid.  The  law  did 
not  apply  to  keepers  of  taverns,  inns,  or  places  of  entertain- 
ment, licensed  and  authorized  under  the  law  of  a  State. 

Before  considering  the  effect  of  internal  and  import  taxes 
upon  the  domestic  manufacture  of  distilled  and  fermented 
liquors,  mention  must  be  made  of  a  number  of  laws,  enacted 
subsequent  to  the  organization  of  the  revenue  service.  They 
were  generally  in  favor  of  the  so-called  country  distillers.  To 
them  the  mode  prescribed  for  entering  stills,  and  the  manner  of 
paying  taxes,  were  sources  of  some  inconvenience  and  loss.  In 
cases,  for  example,  where  the  owners  of  stills  were  liable,  by 
their  entries,  to  pay  the  duty  of  fifty-four  cents  upon  the 
capacity  of  the  stills,  it  frequently  happened  that  the  destruc- 
tion or  failure  of  crops,  whether  of  grain  or  fruit,  either  pre- 
vented distillation  entirely,  or  considerably  reduced  the  quan- 
tity intended  to  be  distilled,  at  the  time  the  entries  were 
made.  Special  relief  was  provided  in  these  cases  by  an  act 
approved  June  1,  1796.  By  an  act  approved  March  3,  1797, 
owners  of  country  stills,  that  is  to  say,  of  stills  operated  in 
places  other  than  a  city,  town  or  village,  and  of  a  capacity  of 
less  than  four  hundred  gallons,  were  given  the  privilege  to  pay 
the  following  licenses,  in  place  of  the  former  taxes,  viz  : 

For  a  license  for  the  employment  of  every  still  during  the 
term  of  two  weeks,  six  cents  per  gallon,  according  to  the 
capacity  or  contents  of  every  such  still ;  for  a  license  for  a 
term  of  one  month,  ten  cents  per  gallon  ;  for  three  months, 
twenty-four  cents  per  gallon  ;  for  four  months,  thirty  cents 
per  gallon  ;  for  five  months,  thirty-six  cents  per  gallon,  and  for 
six  months,  forty-two  cents  per  gallon. 


112  LIQUOR    LAWS   OF    THE    UNITED    STATES. 

Not  yet  satisfied  with  these  modifications  of  the  law  in  their 
favor,  a  certain  class  of  conntry  distillers  sought  to  obtain  a 
further  concession  in  the  form  of  weekly  licenses,  and,  accord- 
ingly, in  the  second  session  of  the  fifth  Congress,  a  recommend- 
ation to  that  effect  was  made  by  the  House  Committee  of 
Ways  and  Means.  Southern  farmers,  who  mostly  distilled  fruit, 
— principally  peaches — were  to  be  benefited  by  this  arrange- 
ment. It  was  contended  that  the  preceding  law,  which  fixed 
the  minimum  duration  of  a  license  at  two  weeks,  leaving  un- 
changed the  requirement  of  entering  stills  at  stated  times, 
excluded  four  out  of  five  of  the  owners  of  orchards  in  the 
Southern  States  from  distilling  their  early  fruit  at  all ;  that 
peaches  ripened  and  rotted  hastily  ;  and  that  persons  who  had 
not  enough  fruit  to  employ  their  stills  more  than  three  or  four 
days,  would  sufier  their  fruit  to  rot,  rather  than  take  a  license 
for  a  fortnight.  The  obligation,  under  the  existing  law,  of 
taking  out  separate  licenses  for  distilling  the  fruit  harvested  at 
three  different  periods  of  the  year,  was  represented  as  another 
hardship,  involving  expense  and  loss  of  time  in  going  to  and 
from  the  excise  offices,  which  latter  in  many  cases  were  situated 
at  considerable  distances  from  the  homes  of  distilling  farmers. 
The  annual  entry  of  stills,  prescribed  by  law  in  all  cases,  whe- 
ther or  not  the  owners  intended  to  work  them,  was  also  com- 
plained of,  and  led  to  the  proposition  that  stills  once  entered 
should  not  require  a  renewal  of  entry,  save  when  their  owners 
intended  to  work  them.  None  of  these  proposed  alterations 
had  the  approval  of  Walcott  (Hamilton's  successor),  and  were 
consequently  rejected.  The  only  further  concession  made  to 
country  distillers  was  the  act  of  January  29th,  1798,  which 
provided  "  that  it  shall  be  lawful  for  all  owners  of  stills  which 
shall  have  been  duly  entered  according  to  law,  to  make  their 
election,  at  any  time  of  the  year,  both  as  to  the  rate  of  duty 
which  they  may  choose  to  pay  for  the  employment  of  their 
said  stills,  whether  for  a  year  or  such  other  shorter  period,  as 


CHAPTER   V.  113 

may  be  allowed  by  law  ;  and  also  as  to  the  time  of  commencing 
such  eniploynient." 

The  laM^s  on  the  internal  taxation  of  distilled  spirits 
remained  in  this  state  to  tlie  date  of  their  revocation,  in  1802 ; 
while  the  rate  of  imposts  on  distilled  and  fermented  liquors, 
excepting  certain  wines  imported  into  the  United  States,  were 
not  changed  until  the  war  of  1812,  although  the  exigencies  of 
part  of  Adams'  administration  (1797-1801),  joroduced  by  the 
disquieting  aspect  of  foreign  affairs,  led  to  the  development  of 
new  sources  of  revenue — among  them  one  still  less  popular 
than  excises,  viz :  direct  taxation.*  As  it  is  intended  to  bring 
under  consideration,  in  this  chapter,  the  general  results  of  the 
external  and  internal  taxation  of  liquors  during  the  last  decade 
of  the  past,  and  the  first  decade  of  the  present  century,  it 
seems  appropriate,  in  order  to  preserve  the  chronological  order 
of  events,  briefly  to  narrate  under  what  circumstances  the 
excise  law  was  repealed. 

The  origin  of  the  opposition  to  the  Federalist  administra- 
tion dates  back,  as  has  been  seen,  to  Hamilton's  fiscal  system, 
beginning  with  the  assumption  of  the  State  debts,  and  grow- 
ing stronger  under  every  subsequent  measure  of  taxation — 
from  the  imposition  of  excise  duties  to  the  system  of  direct 
taxation  introduced  under  Wolcott's  administration  of  the 
Treasury  Department.  Other  causes  arose,  it  is  true,  to  solid- 
ify and  strengthen  the  opposition,  but  the  fiscal  questions 
remained  landmarks  of  party  division  throughout  Washing- 
ton's and  Adams'  administrations,  and  formed  an  essential  part 
of  the  credo  to  which  Jefferson  owed  his  accession  to  the  pre- 
sidential chair.     Under  these  circumstances  it  was  but  natural 


*  For  augmenting  the  army  and  perfecting  coast  defences  tlie  act  of 
July  14,  1798,  imposed  a  direct  tax  of  $3,000,000  on  houses,  lands  and  slaves. 
Singularly  enough  this  law  also  met  with  open  resistance  in  Pennsylvania  ; 
in  this  case  however,  the  riot — dignified  in  history  with  the  appellation  of 
the  Pries  Insurrection — was  quelled  almost  before  it  was  begun. 


114  LIQUOR    LAWS    OF   THE    UIOTED   STATES. 

that  the  Democrats  (pre\nously  called  the  Republicans)  should, 
on  assuming  control  of  the  government,  hasten  to  abolish  tlie 
systems  they  had  so  vigorously  and  ably  assailed.  The  aus- 
picious state  of  affairs  under  which  they  came  into  power  * 
necessarily  confirmed  their  resolution  and  accelerated  their 
action.  On  the  30th  of  December,  1801,  twelve  days  after 
Jefferson  had,  in  his  inaugural  address,  recommended  the 
abolition  of  all  internal  taxes,  the  House  Committee  of  Ways 
and  Means  were  instructed  to  inquire  into  the  expediency  of 
repealing  duties  on  stills  and  distilled  spirits,  and  other  internal 
duties.  In  their  report,  submitted  March  8,1802,  the  commit- 
tee, after  dwelling  upon  the  difficulty  and  expense  of  collecting 
the  tax  on  twenty-two  thousand  country  stills,  scattered  over 
an  immense,  but  thinly  settled  territory ;  and  recounting  the 
popular  objections  to  excises,  viz :  the  oppressive  and  vexatious 
character  of  the  taxes,  their  hostility  to  the  genius  of  a  free 
people  and  their  tendency  to  multiply  offices,  recommended  the 
revocation  of  the  laws  relating  to  internal  duties.  In  the  dis- 
cussion which  attended  the  resolution  calling  for  an  inquiry 
into  the  expediency  of  abolishing  these  taxes,  the  expense  of 
collection  formed  the  principal  source  of  acrimonious  wrang- 
lings,  and  led  to  some  very  inaccurate  statements  on  the  part 
of  the  supporters  of  the  new  administration.  The  truth  is, 
that,  compared  with  the  cost  of  collecting  imposts  and  tonnage 
duties,  the  expense  of  securing  excise  taxes  seemed  dispropor- 
tionately large.  The  reasons  are  too  obvious  to  require  more 
than  passing  notice.  The  amount  ofinternal  taxes,  imposed  upon 
but  a  few  articles,  was  comparatively  small ;  the  objects  taxed 
were  widely  dispersed  over  the  entire  Union  ;  and  the  tax-payers 


*  Hildretli  writes  of  this  period  :  "  The  treasury  was  fuller,  the  reve- 
nue more  abundant  than  at  any  previous  period.  Commerce  was  flourishing, 
and  the  pecuniary  prosperity  of  the  country  was  very  great.  All  the  res- 
ponsibility of  framing  institutions,  laying  taxes,  and  providing  for  debts, 
had  fallen  on  the  ousted  administration."    (Vol.  iv.,  p.  419.) 


CHAPTER   V.  115 

were  not  inclined  to  aid  the  collectors.  In  proportion  as  the 
amount  ot"  taxes  increased  and  the  opposition  to  excises  sub- 
sided, the  cost  of  collection  decreased.  Thus  in  1795,  when  th6 
internal  revenues  from  all  sources  amounted  to  but  $528,481 
the  cost  of  collection  was  twenty-five  per  cent. ;  while  in  1801, 
the  total  revenue  being  double  the  former  amount,  the  expense 
of  collection  only  amounted  to  twelve  per  cent.  The  difi*er- 
ence  between  the  cost  of  collecting  the  taxes  on  distilled  spir- 
its in  the  country,  and  in  cities,  towns  or  villages,  amounted  to 
almost  fifty  per  cent.,  a  fact  which  in  itself  sufficiently  explains 
the  causes  of  the  expensiveness  of  internal  taxes  at  the  time 
in  question.  An  attempt  on  the  part  of  the  minority,  to  have 
only  the  taxes  on  country  stills  revoked,  leaving  the  excise  on 
spirits  distilled  in  towns  and  villages  intact,  proved  abortive, 
and  the  entire  system  was  finally  abolished.  The  question  of 
temperance  was  remotely  hinted  at,  but  failed  to  receive  any 
consideration  whatever. 

As  to  the  efi*ect,  upon  the  respective  manufactures,  of 
internal  and  external  taxes  upon  distilled,  and  import  duties 
upon  fermented  liquors,  during  the  four  years  from  1791  to 
1795,  it  goes  without  saying,  that  no  reliable  conclusions  can 
be  deduced  from  the  reports  of  the  Treasury  Department,  in- 
asmuch as,  before  the  suppression  of  the  Whiskey  Insurrection 
the  collection  of  taxes,  save  in  the  New  England  States,  was 
so  irregular  as  to  afford  no  index  to  the  quantity  of  spirits 
actually  distilled.  In  Pennsylvania,  for  instance,  where  about 
five  thousand  public  and  private  stills  were  in  operation,  in 
1790,  only  eight  hundred  stills,  producing  250,380  gallons  of 
spirits,  had  been  entered  from  July  1,  1791  to  July  1,  1792. 
Yirginia  paid  but  $12,000  on  distilled  spirits  during  the  same 
period ;  whereas  in  1795,  with  decreased  rates,  she  paid 
$G5,990.  It  does  not  follow  in  either  case  that  less  whiskey 
was  manufactured  during  the  fiscal  year  1791-1792;  but  it 
does  follow,  from  what  has  been  related  before,  that  the  law 


116  LIQUOR    LAWS    OF   THE   UNITED   STATES. 

was  evaded.  The  changes  made  in  the  rates  before  and  after 
the  Insurrection,  and  the  mode  of  computing  taxes  according 
to  the  capacities  of  stills,  in  any  event  precluded  accurate 
statements  of  quantities  distilled,  and  the  only  guide  in  res- 
pect to  a  comparison  must  be  the  amount  of  duties  paid.  In 
order  to  give  as  clear  a  statement  as  possible  of  the  operation 
of  the  laws,  it  seems  ^idvisable  to  follow  the  various  official 
reports  on  the  subject. 

The  amounts  of  duties  on  spirits  distilled  in  the  United 
States  to  1795,  inclusive,  were: 

1792 $208,942 

1793 ...  337,705 

1794 274,089 

1795 337,775 

The  estimated  quantity  of  spirits  distilled  in  1791-92  from 
foreign  material,  in  stills  entered  according  to  law, was  2,210,559 
gallons,  and  from  domestic  material  944,004:  gallons.  For  the 
year  ended  June,  1795,  the  quantity  distilled  from  foreign 
material,  in  stills  which  were  entered  according  to  law,  may  be 
estimated  at  1,500,000  gallons,  yielding  a  gross  amount  of  revenue 
of  $141,989;  whereas  the  gross  income  from  spirits  distilled  from 
domestic  material  amounted  to  $218,036.  It  will  be  seen  at  a 
glance,  that  the  state  of  things  of  1792  was  reversed  in  1795 ; 
during  this  brief  period  the  manufacture  of  rum  decreased  as 
considerably  as  that  of  whiskey  and  spirits  from  domestic 
fruit  increased.  The  war  in  the  West  Indies  explains  the  for- 
mer fact.  The  importation  of  molasses  in  the  year  1794  was 
less  than  in  1791,  by  3,700,000  gallons ;  and,  owing  to  the  high 
price  of  sugar,  a  greater  proportion  of  the  quantity  of  molasses 
imported  was  consumed  in  the  raw  state.  The  manufacture 
of  spirits  from  domestic  products  yielded  a  much  greater  sum 
in  1795,  than  either  in  1792,  in  1793  or  in  1794;  yet  the  quan- 
tity for  which  taxes  were  paid  remained  far  behind  the  quan- 
tity distilled.  The  principal  causes  of  this  discrepancy  are  known 


CHAPTEK    V. 


117 


to  the  reader.  There  may,  however,  have  been,  and  no  doubt 
there  was,  an  actual  decrease  in  the  manufacture.  The  Commis- 
sioner of  Internal  Revenue,  in  his  report  of  the  5th  of  March, 
1796,  points  out  some  reasons  for  this.  "  The  excessive  prices,'* 
he  says,  "  of  grain,  of  marketable  and  exportable  fruits,  and 
of  cider,  have  deprived  the  distillers  of  avery  large  portion  of 
the  means  to  employ  their  stills.  In  all  places  the  induce- 
ments to  distil  have  been  greatly  diminished  by  the  increased 
competition  of  the  miller  and  merchant  of  every  species  of 
grain."  Although  no  accurate  data  can  possibly  be  obtained 
at  this  late  day,  yet  it  may  readily  be  taken  for  granted,  that 
a  part  of  the  decrease  was  due  to  the  abandonment  of  distil- 
lation by  a  large  portion  of  the  farmers.  From  speeches 
made  in  Congress  it  appears,  that  many  Southern  farmers  let 
theu'  fruit  rot,  rather  than  pay  taxes  for  a  longer  period 
than  they  intended  to  work  their  stills;  and  Findley  states 
in  his  History  of  the  Insurrection,  that  many  country  distil- 
lers, who  were  too  conscientious  to  evade  the  law,  abandoned 
distilling  altogether.  In  1796  the  manufacture  of  rum 
amounted  to  2,296,300  gallons,  that  of  spirits  distilled  from 
domestic  products  to  1,009,797  gallons.  The  importation 
of  molasses  in  1795  had  been  much  greater  than  in  the  pre- 
vious year,  which  fact  explains  the  increase  in  the  production 
of  rum.  For  the  succeeding  years,  up  to  1802,  the  total  reve- 
nues from  all  internal  duties  on  distilled  spirits  were: 

1797,  $565,984,  of  whicli  amount  licenses  to  retailers  yielded,*  $63,861 

1798,  584,923,  "  "  64,823 

1799,  573,086,  "  "  66,434 

1800,  580.508,  "  "  65,159 

1801,  593,000,  "  "  69,173 


*  In  1795  and  1796  the  retail  licenses  yielded  $54,731  and  $63,763  respect- 
ively. In  1795,  tliere  were  3,203  licensed  retailers  of  wine  and  7,461  licensed 
retailers  oi  foreign  spirits  ;  in  1801  the  former  numbered  3,556  ;  the  latter 
10,283. 


118  LIQUOR   LAWS    OF   THE   UNITED    STATES. 

The  quantity  of  spirits  annually  distilled  from  foreign  ma- 
terial remained  nearly  the  same  throughout  this  period,  rang- 
ing from  1,500,000  to  2,000,000  gallons  ;  the  average  annual 
revenue  from  this  source  being  $160,000 ;  hence  the  increase 
of  revenue,  as  shown  in  the  above  table,  is  attributable 
to  an  augmentation  of  spirits  distilled  from  grain  and  fruit  of 
the  growth  of  the  United  States.  With  the  relaxations  of  the 
law  up  to  1795,  country  distilling  rapidly  recuperated,  or  to  be 
more  concise,  the  amounts  of  taxes  paid  on  spirits  distilled  in 
the  country  approached  the  actual  quantity  distilled  far  more 
nearly  than  in  preceding  years.  Hamilton,  in  1791,  estimated 
the  annual  domestic  production  of  ardent  liquors  of  both  kinds 
at  6,500,000  gallons ;  but  it  was  not  before  the  year  1775  that 
the  amount  of  revenue  from  this  source  approximately  corres- 
ponded with  this  estimate.  During  the  ten  years,  from  1792 
to  1802,  the  importation  of  spirits  of  all  kinds  increased  from 
4,679,993  in  the  former,  to  8,396,738  gallons  in  the  latter 
year ;  the  exportation  increased  but  very  slightly,  viz :  from 
1,032,050  to  1,313,728  gallons. 

Of  the  incidental  objects  sought  to  be  attained  by  the  va- 
rious laws  on  the  liquor  traffic,  one  was  the  protection  of  the 
home  products  against  the  competition  of  the  foreign  article ; 
the  other  a  diminution  of  the  consumption  of  ardent  spirits. 
Neither  aim  was  fully  realized.  The  protection  of  spirits  from 
the  products  of  American  husbandry  was  effected ;  but  it  re- 
quired higher  duties,  to  enable  American  distillers  of  foreign 
material  to  compete  with  foreign  manufacturers ;  besides,  the 
former  labored  under  mechanical  difficulties,  which  rendered 
their  product  of  a  quality  inferior  to  that  of  foreign  countries. 
In  a  petition  submitted  to  Congress  in  1798,  a  number  of  dis- 
tillers of  Rhode  Island  asked  for  an  increase  of  the  duties  upon 
imported  spirits,  on  the  ground  that  they  had  invested  consid- 
erable sums  in  the  erection  of  distilleries  for  the  distillation 
of  rye  and  molasses  ;  but  owing  to  the  great  cheapness  of  rye 


CHAPTER   V.  119 

in  Holland,  and  the  hazard  and  difficulty  which  attended  the 
obtaining  of  molasses,  found  themselves  imable  to  compete 
with  foreign  manufacturers  of  rum  and  gin.  The  Ilonse  Com- 
mittee of  Ways  and  Means,  to  whom  this  petition  was  re- 
ferred, reported  adversely  thereon  in  the  following  words: 
"  The  petition  seeks  to  secure  a  preference  to  the  domestic 
manufacture,  which  would  have  the  effect  of  taxing  the  con- 
sumer of  imported  spirits,  for  the  benefit  of  the  home  distil- 
lers. From  this  view  of  the  subject,  the  Committee  are  of 
the  opinion  that  the  petition  ought  not  to  be  granted."  What  a 
departure  from  the  original  purpose  of  the  law-makers !  A  still 
higher  duty  might  have  answered  the  moral  purpose  contem- 
plated, had  the  government  had  the  means  to  enforce  the  ex- 
cise law  of  1791,  or  even  that  of  1792,  in  spite  of  popular 
opposition,  and  notwithstanding  the  many  obstacles,  which  the 
great  extent  of  teriitory  and  the  widely  dispersed  population 
threw  in  the  way  of  such  a  system  of  taxation.  In  that  case 
consumption  would  surely  have  been  decreased,  as  a  high  im- 
port duty  would  have  diminished  importation,  and  a  moderate 
tax  on  domestic  spirits  would  inevitably  have  restricted  country 
distilling.  In  view  of  the  habits  of  the  people,  and  of  the  de- 
cisive importance  which  the  liquor  question  had  assumed  in 
the  political  agitations  of  the  day,  these  hypotheses  seem  chi- 
merical. But  even  unfavorably  as  matters  stood,  there  is  in- 
controvertible evidence,  that  the  legal  restrictions  laid  upon  the 
manufacture  of  ardent  spirits,  though  they  did  not  positively 
diminish  consumption,  at  least  had  a  very  strcmg  tendency  to 
'prevent  a  dilatation  of  that  ratio  of  increase  which  occasioned 
so  much  anxiety  hefore  1790.  This  can  easily  and  effectively 
be  demonstrated.  The  following  table,  compiled  from  official 
reports,  and  showing  population,  production,  imports,  exports 
and  consumption,  needs  some  explanation  in  order  to  be  rightly 
understood.  In  the  third  column  is  given  the  production 
of    domestic    spirits,    as    estimated    by    the    Treasury    De- 


120  LIQUOR   LAWS   OF   THE   UNITED    STATES. 

partment  for  the  years  set  opposite  the  quantities  pro- 
duced ;  in  the  sixth  and  succeeding  columns  the  period 
from  1790  to  1800,  although  consisting  of  eleven  years,  was 
treated  as  a  decade,  so  as  to  obtain  a  basis  of  calculation  cor- 
responding with  the  official  enumeration  of  the  inhabitants  of 
the  United  States.  The  excise  system  remained  in  force  until 
1802,  and  for  this  reason  .the  years  1801  and  1802  should 
properly  have  been  included  in  the  first  period,  but  from  the 
nature  of  the  official  data  obtainable,  such  a  division  of  the 
two  decades  would  have  occasioned  erroneous  conclusions. 
The  statements  of  the  average  quantities  annually  imported 
and  exported  during  the  two  periods  are  based  entirely  upon 
official  returns ;  the  quantity  of  domestic  spirits  produced  in 
1810  is  stated  in  the  Digest  of  Manufactures^  submitted  by 
President  Madison  to  the  Senate  on  the  5th  of  January,  1814. 
(Am.  State  Papers ;  Finance,  vol.  i.,  p.  763.) 


CHAPTER   V. 


121 


:v,>-n\ 


g_^g  si-- a 


<i 


"&= 


u  Ok. is  03:-; 

fig.®   «.a 


.2  a  2 


i.  o  =  aj  g 


■So^agg 


a 


X'W-'-    CO    cl 


■>*  »H 


<»     .2  =5  a    ,  ai 
boa  -S  " 'C  o  a 

OS  g  0.0)  313  O 

S  a  a  a-s  g^ 


OoW     •'^ 


<u      .is  00         ,"0 

Sv,-2  ■"  ii  w  01  a 
^90        a 


a  o  c«     tj  , 
S  a.i:  —  .^  a>  0) 
a.L"'  a.  S  ^  "o  a 

^^SS|g>a 


^  S  a  a 

^,  O  o  oi  -r;    -  2 

s  <u  a 


o  O  .„  03  .H    .-  ai 


•«     a  ^     . 
a,  O      03  .S    ,  2 

«"5t^  t<  ^o  OS 

^1  tr.a 


u  «   « 

oil  is 

0.2'^  m" 
9-2  a  a 


M 


bJO 


aj  o  o  =3.-.    ,2 

-1.1 1  -s 


1-1  CO 


OS  1-1 


122  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

Taking  Hamilton's  estimate  of  the  consumption  of  ardent 
epirits  in  the  United  States  before  the  year  1790  (Am.  St.  P., 
vol.  vii.  p.  156),  and  the  showing  of  the  foregoing  table,  we 
obtain  the  following : 

Per  capita  consumption  before  1790 11.20  quarts. 

Average  annual  per  capita  consumption  1790-1800. .  11.57      " 

1800-1810..  18.08      " 

Another  incidental  object  of  the  laws  in  question  was  the 
encouragement  and  protection  of  the  manufacture  of  malt 
liquors.  Any  one  acquainted  with  the  results  of  taxation  in 
more  recent  years  will  incline  to  the  opinion,  that  the  rate  of 
import  duties  imposed  upon  malt  and  malt  liquors  by  the  Act 
of  May  8,  1792,  was  not  of  a  strongly  protective  nature  ;  yet, 
in  view  of  the  many  impediments  which  retarded  the  develop- 
ment of  the  brewing  industry,  it  must  be  admitted  that  a 
higher  duty  upon  these  articles  might,  without  accelerating 
the  progress  of  brewing,  have  injured  the  cause  of  temperance 
by  restricting  importation.  It  was  surely  not  anticipated, 
and  could  not  reasonably  be  expected,  that  such  a  change  of 
habits  and  tastes,  as  seemed  necessary  to  popularize  the  use  of 
fermented  liquors,  could  be  effected  within  one  or  two  decades ; 
furthermore,  it  must  have  been  foreseen,  that  the  manufacture 
of  these  beverages  would  at  first  be  confined  to  certain  locali- 
ties, and  depend  for  its  prosperity  upon  the  character  and 
composition  of  the  population.  That  the  brewing  industry 
progressed  considerably  in  those  localities  where  it  was  intro- 
duced, shortly  before  and  after  the  Revolution,  is  evidenced  by 
a  number  of  circumstances.  As  early  as  1807  the  production 
of  malt  liquors,  according  to  Gallatin's  statement,  was  nearly 
equal  to  the  consumption,  yet  the  importation  of  malt  into 
Pennsylvania  had  already  ceased  in  1793  ;*  thus  showing  that 
the  adjuncts  of  brewing  in  the  large  establishments  were  rap- 


*  Coxe's  View  of  the  United  States  ;  p.  4a. 


CHAPTEK  V. 


123 


idly  being  perfected.  In  Philadelphia,  where  the  agitation  in 
favor  of  the  substitution  of  fermented  liquors  for  ardent  spirits 
had  found  most  favor,  the  use  of  beer  had  become  very  gen- 
eral,* and  soon  extended  into  the  larger  cities  of  adjoining 
States.  The  state  of  the  brewing  industry  in  1809-10  appears 
from  the  following  table,  taken  from  the  Digest  of  Manu- 
factures already  quoted : 


states  and  Territories. 


Massachusetts 

New  York 

New  Jersey 

Pennsylvania 

Delaware  

Maryland 

Virginia 

Ohio 

Georgia 

District  of  Columbia 


Population. 


700,745 
959,049 
245,562 
810,091 

72.674 
380,546 
979,622 
230,760 
252,433 

24,023 


Number 
of 
Brew- 
eries. 


Beer,  Ale 
and  Por- 
ter in 
Barrels 
of3U 
Gallons. 


42 


48 


7 

13 

1 

3 


22,400 

66,896 

2,170 

71,273 

476 

9,330 

4,251 

1,116 

1,878 

2,900 


Value. 


$86,450 

340,766 

17,229 

376,072 

7,616 

69,880 

23,898 

5,712 

11,268 

17,400 


4,655,505         129      182,690      $955,791 


*  Beer  was  brewed  in  Philadelphia  for  several  years  before  the  revolu- 
tionary war,  and  soon  after  peace  the  more  substantial  porter  was  made  by 
Kobert  Hare.  Until  within  three  or  four  years  (1810),  the  consumption  of 
that  article  had  greatly  increased,  and  is  now  the  common  table  drink  of 
every  family  in  easy  circumstances.  The  quality  of  it  is  truly  excellent : 
to  say  that  it  is  equal  to  any  of  London,  the  usual  standard  for  excellence, 
would  undervalue  it,  because  as  it  regards  either  wholesome  qualities  or 
palatableness,  it  is  much  superior  ;  no  other  ingredient  entering  into  the 
composition  than  malt,  hops  and  pure  water  ;  and  yet  to  a  foreign  porter 
palate,  accustomed  to  the  impression  left  by  the  combination  of  the  hetero- 
genous compounds  called  English  malt  liquors,  our  home-brewed  stuff  will. 


124:  LIQUOR    LAWS    OF    THE    UNITED    STATES, 

The  per  capita  production  of  malt  liquors  in  the  States 
named  (the  total  amount  produced  being  5,754,737  gallons), 
amounted  to  almost  one  and  one-fourth  gallon,  or,  to  be  pre- 
cise, to  4.98  quarts.  This  does  not  include  what  in  the  digest 
is  stjled  ancient  fermented  liquors,  made  of  honey — the  old 
German  meth,  here  called  metheglin  and  mead — of  which 
considerable  quantities  are  said  to  have  been  produced  and 
consumed  by  private  families.  Surely,  this  is  a  gratifying 
development  of  a  new  industry  within  so  brief  a  period,  and 
under  difficulties  of  which  the  present  followers  of  the  trade 
can  scarcely  form  an  adequate  idea.  That  part  of  the 
Digest  of  Manufactures  which  treats  of  these  difficulties 
deserves  particular  mention.     It  is  stated  therein  that 

"  The  moralizing  tendency  and  salubrious  nature  of  fer- 
mented liquors — beer,  ale,  porter  and  cider* — recommend 
them  to  a  serious  consideration,  a^id  particularly  in  our 
country.  The  difficulty  and  expense  of  procuring  a  sup- 
ply of  strong  bottles,  and  a  peculiar  taste  for  lively  or 
foaming  beer,  which  our  summers  do  not  favor,  have  been 
the  principal  causes  of  the  inconsiderable  progress  of  the 
manufacture  of  malt  liquors,  compared  with  distilled 
spirits.  The  absence,  or  the  infrequency  of  malting,  as 
a  separate  trade,  has    also  operated   against  brewing  in  a 


no  doubt,  appear  insipid.  Within  a  few  years  pale  ale  of  the  finest  quality 
is  brewed  and  justly  esteemed,  being  light,  sprightly  and  free  from  that 
bitterness  which  distinguishes  porter.  The  quantity  of  each  particular 
malt  liquor  brewed  in  Philadelphia  cannot  be  given,  as  there  is  no  excise 
nor  duty  upon  hops  or  malt,  and  if  there  be  no  other  mode  of  ascertainii^g 
the  point,  it  is  to  be  Jioped  we  shall  ever  remain  ignorant  on  the  subject. 
Great  quantities  of  beer  are  exported  to  other  States.  The  hops  are  almost 
entirely  brought  from  New  England  ;  much  of  the  barley  comes  from 
Rhode  Island.— (Picture  of  Philadelphia  in  1810,  by  Mease.) 


*  For  the  full  text  of  the  observations  on  the  advantages  of  vine-culture 
Bee  Appendix. 


CHAPTER    V.  125 

small  way  and  in  families.  The  great  facility  of  making 
and  preserving  distilled  spirits  has  occasioned  them  ex- 
ceedingly to  interfere  with  the  brewerj-.  The  liquor  of 
peaches,  hitherto  deemed  incapable  of  use  without  distil- 
lation, greatly  prevents  the  use  of  beer  in  a  very  extensive 
region  of  our  country,  where  the  peach  tree  grows  with 
the  freedom  of  a  weed,  and  where  its  fruit  is  of  the  best 
quality.  Cider,  which  is  abundantly  produced  in  another 
very  extensive  region,  rivals  fermented  malt  liquors  as  a 
common  drink,  and  as  a  material  for  a  customary  concoction 
(the  cider  royal)  and  for  distillation." 

The  want  of  bottles,  it  will  be  remembered,  was  pointed  out 
during  the  discussions  in  the  first  Congress,  as  an  impediment 
to  brewing ;  but  the  brewer  of  the  present  day  will  scarcely 
appreciate  the  stress  laid  upon  this  want,  unless  a  full  account 
could  be  given  him  of  the  character  of  the  malt  liquors 
brewed  in  those  days.  Unfortunately,  no  such  account  can 
be  obtained ;  yet  a  conclusion  may  be  ventured  from  the 
statement  that,  until  a  Philadelphia  brewer,  of  the  name  of 
Robert  Hare,  invented,  in  1809,  a  peculiarly  constructed  cask 
and  faucet,  no  method  was  known  of  preserving  beer,  on  tap, 
in  partly  filled  vessels.  What  the  word  ^''^n^eserving  means  in 
this  connection  will  appear  from  the  following  passage  of  the 
Digest : 

"  The  want  of  a  head,  or  top  of  foam,  is  now  observable 
in  the  tap  beers  of  Europe,  and  it  is  presumable  that  this 
object  of  fancy  or  taste  will  not,  therefore,  be  in  future 
deemed  indispensable  in  American  tap  houses  and  families. 
We  have  been  used  to  consider  the  want  of  this  foam  as  an 
evidence  of  badness." 

That  the  use  of  the  liquor  of  peaches  prevented  the  intro- 
duction of  the  brewing  industry  into  the  Southern  States,  is  an 
observation  of  as  much  force  to-day  as  it  was  seventy  years 


126  LIQUOR   LAWS    OF   THE   UNITED    STATES. 

ago ;  but  later  experiences  have  demonstrated  the  fact,  that 
the  influence  of  climatic  conditions,  coupled  with  the  high 
price  of  ice,  is  quite  as  unfavorable  to  the  industry  as  the 
abundance  of  fruit  and  the  taste  of  the  people.  In  addition 
to  a  scarcity  of  bottles  there  also  was  a  want  of  cork  and 
wire  for  bottling  purposes.  Establishments  for  manufacturing 
these  three  articles  were  just  beginning  to  grow  into  some 
importance,  and,  of  course,  demanded  protection,  which  was 
granted  at  least  to  one  of  them.  By  the  Act  of  March  27, 
1804,  quart  bottles,  which,  in  order  to  foster  the  brewing 
industry,  had  theretofore  been  exempt  from  the  duty  upon 
glass-ware,  were  taxed  sixty  cents  per  gross;  yet  the  home 
supply  remained  behind  the  demand. 

All  these  impediments,  however,  would  not  so  materially 
have  retarded  the  progress  of  brewing,  if  laws  tending  to 
restrict  country  distilling  could  have  been  maintained ;  and, 
from  the  standpoint  of  true  temperance,  nothing  could  have 
appeared  so  desirable  as  a  judicious  restraint  upon  what  might 
be  styled  rural  distillation.  All  authorities  concur  in  the 
opinion — recently  confirmed  by  the  voluminous  report  of  the 
Statistical  Bureau  of  Switzerland* — that  in  Sweden  unre- 
stricted distillation  in  the  rural  districts  rendered  intemper- 
ance a  national  vice  of  consequences  all  the  more  pernicious 
as,  owing  to  the  unavoidable  deficiencies  of  a  primitive  mode  of 
distillation,  the  spirituous  liquors  produced  were  of  an  ex- 
tremely ardent  nature.  But  it  was  precisely  in  respect  to 
country  distilling,  that  our  first  restrictive  laws  were  only 
partially  successful.  Those  persons  who  distilled  for  the 
trade,  cheerfully  obeyed  the  laws  from  the  very  beginning ; 
and  had  they  not  elected  to  do  so,  little  difficulty  could  have 
been  experienced  in  controlling  and  coercing  them.  It  was 
not  the  trade  distiller,  if  this  term  may  be  allowed,  but  the 


*  Zur  Alcoliolfrage.      Vergleichende    Darstellung    der    Gesetze    und 
Erfahrungen,  &c.  (Bern,  1884) ;  p.  68. 


CHAPTER   V.  127 

distilling  farmer  from  whom  the  opposition  to  excises  eman- 
ated, and  with  him,  as  we  have  seen,  the  question  resolved 
itself  into  one  of  personal  rights,  on  the  one  hand,  and  of  a 
limitation  of  the  taxing  power  of  the  Federal  Government, 
on  the  other. 

Insufficient,  both  as  to  time  and  mode,  as  has  been  the 
test  to  which  the  excise  system  was  subjected,  it  was,  never- 
theless, proved  beyond  question  that,  coupled  with  a  suffi- 
ciently high  import  duty,  it  could  have  fully  realized  the 
ethical  objects  of  its  framers,  if  the  Government  had  been 
able  to  execute  it  rigorously,  and  the  people  had  been  willing 
to  live  up  to  it.  From  the  foregoing  tabular  exhibit  it  is 
manifest,  that  after  the  internal  duties  had  been  abolished, 
the  import  duties  remaining  virtually  intact,  the  people 
quickly  relapsed  into  their  former  habits,  growing  more  and 
more  addicted  to  the  use  of  ardent  spirits  from  year  to  year. 
The  growth  of  domestic  distillation  from  materials  of  home 
production  furthermore  received,  as  that  of  all  domestic 
manufactures  did,  an  additional  impetus  from  the  suspen- 
sion of  foreign  commerce,  brought  about  by  the  decrees  of 
Berlin,  Milan  and  Bayonne,  tlie  British  orders  in  council,  and 
the  consequent  cis- Atlantic  Embargo,  Eon-importation  and 
Non-intercourse  Acts. 


CHAPTER  YI. 

FISCAL   POLICY  trNDER    JEFFERSOn's    AND    MADISON's    ADMINISTEA- 

TioNS.  —  Gallatin's    financial    views. — protection    of 

DOMESTIC     MAJSrUFACTURES  GALLATIn's     PROPOSITIONS     ON 

THE    SUBJECT. SUPPOSITION    THAT     IN    CASE    OF    WAR    THE 

DOUBLING     OF     EXTERNAL     DUTIES    WOULD     MEET    ALL     EXI- 
GENCIES.  SPIRITS    SINGLED    OUT    AS    CAPABLE     OF    BEARING 

HEAVIEST     EXTERNAL    TAX. — TIMID    POLICY   IN   RELATION   TO 

INTERNAL    LIQUOR    TRAFFIC. EFFECT     OF    IMPENDING    WAR 

WITH    GREAT  BRITAIN. CHANGE   OF  FISCAL  POLICY  ;    RETURN 

TO     HAMILTONIAN     PRINCIPLES. EXCISE     SYSTEM     PROPOSED 

AND     IGNORED. IMPORT    TAXES     DOUBLED. REVERSES     OF 

WAR. MADISON    URGES    IMPOSITION     OF   INTERNAL   TAXES. — 

CONGRESS   ACTS   ON    RECOMMENDATION. INTERNAL    REVENUE 

SYSTEM  ENLARGED  ;  ADDITIONAL  EXCISE  DUTIES  ON  SPIRITS. 

TERMINATION   OF  WAR.— GRADUAL   REDUCTION    OF    EXTERNAL 
AND  INTERNAL  TAXES,  AND  FINAL  ABOLITION  OF   THE  LATTER 

DUTIES. — Monroe's  policy  ;  forecast  of  high  protective 

MEASURES. RETROSPECT  ;  EFFECTS  OF  PRECEDING  LAWS. 

The  fiscal  policy  inaugurated  under  Jefferson's,  and  sought 
to  be  maintained  under  Madison's  administration  was  the 
natural  outcome  of  a  plethoric  exchequer ;  its  basis  was  the 
principle  of  external  taxation.  In  case  of  war  loans  were  to 
be  relied  on  for  defraying  extraordinary  expenses.  This  poli- 
cy is  best  characterized  in  the  following  passage  of  one  of  Gal- 
latin's annual  treasury  reports  :* 

The  geographical  situation  of  the  United  States,  their  history  since 
the  Revolution,  and,  above  all,  present  events  remove  every  apprehension 


*  Annual  report  of  the  Secretary  of  the  Treasury  of  December  10th, 
1808. 


CHAPTEIl    VI.  129 

•of  frequent  wars.  It  may,  therefore,  be  confidently  esiJected  that  a  reve- 
nue derived  solely  from  duties  on  importations,  though  necessarily  impaired 
by  war,  will  always  be  amply  sufficient,  during  long  intervals  of  peace,  not 
only  to  defray  current  expenses,  but  also  to  reimburse  the  debt  contracted 
during  the  few  periods  of  war. 

During  the  whole  of  Jefferson's  first  and  half  of  his  second 
term  of  office  the  revenues  derived  from  specific  and  ad  valo- 
rem duties  exceeded  bj  two  millions  the  amounts  necessary 
for  the  maintenance  of  government,  and  the  payment  of  the 
interest,  and  part  of  the  principal,  of  the  debt.  Although 
various  modifications  of  the  tariff  laws  were  effected  during 
that  time,  the  general  productiveness  of  the  duties  was  not 
disturbed ;  the  transfer  to  the  free-list  of  a  number  of  articles, 
hitherto  taxed  ad  valorem,  being  counter-balanced  by  the  im- 
position (by  the  Act  of  March  26th,  1804)  of  an  additional 
duty  of  2|-  per  cent,  on  the  value  of  goods  then  paying  an  ad 
'oalorein  duty,  and  by  the  augmentation  of  the  list  of  articles 
paying  specific  duties,  effected  by  Act  of  March  27th,  1804. 
The  increase  of  the  rate  per  cent,  ad  valorem  was  intended,  as 
the  act  states,  for  the  protection  of  the  commerce  and  sea- 
men of  the  United  States  against  the  Barbary  Powers ;  whereas 
the  increase  of  the  number  of  specific  duties  was  a  purely 
protective  measure,  adopted  in  conformity  with  a  report  of 
the  House  Committee  of  Commerce  and  ISTavio-ation,  dated 
February  21,  1803.  In  this  report,  occasioned  by  a  great 
number  of  petitions  from  the  manufacturers  of  over  a  dozen 
articles,  the  statement  that  the  existing  imposts  did  "  not 
operate  as  protecting  duties  to  our  infant  manufactures," 
was  coupled  with  the  recommendation,  that  a  plan  be  sub- 
mitted for  laying  new  and  more  specific  duties  on  im- 
ported goods,  wares  and  merchandise,  in  such  manner  as 
neither  to  increase  nor  diminish  the  revenue.  Accordingly, 
a  number  of  raw  materials,  among  them  the  bark  of  the 
cork  tree,  were  declared  free  of  duty,  and  the  list  of  articles, 


130  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

paying  specific  duties  was  so  extended  as  to  include  most 
of  the  manufactures  of  tlie  petitioners.*  From  tliese  changes 
of  the  law  it  will  readily  be  inferred  that  the  new  fiscal  policy, 
though  apparently  aiming  at  a  tariff  for  rev^enue  only,  did  not 
exclude  considerations  of  a  Protectionist  character  ;  in  fact,  in 
his  report  relative  to  the  above  proposition  for  laying  new 
specific  duties,  Gallatin  expressed  the  opinion  that  the  legisla- 
ture should  introduce,  from  time  to  time,  such  modifications  as 
might  appear  most  favorable  to  the  agricultural  and  manufactur- 
ing interests  of  the  country.  Petitions  for  the  protection  of 
manufactures  continued  to  be  presented  in  great  numbers,  even 
after  the  suspension  of  foreign  commerce  had  considerably 
decreased  importation,  and  contributed  no  little  to  the  develop- 
ment of  our  industries.f  In  1809  Gallatin  was  instructed 
to  report  a  specific  plan  for  the  encouragement  of  manufac- 
tures ;  but  he  failed  to  do  so  for  the  want,  as  he  claimed,  of 
sufficient  information.  In  1810,  however,  he  proposed,  in  a 
general  way,  the  alternative  of  increasing  the  import  duties  or 
granting  loans  to  manufacturers,  for  which  latter  expedient,  as 
we  have  seen,  the  first  Congress  had  established  a  few  prece- 
dents. At  about  the  same  time — the  danger  of  a  war  with 
either  England  or  France  becoming  more  and  more  imminent 
— he  reiterated  the  opinion  formerly  expressed,  that  no  other 
sources  of  revenue  save  increased  import  duties  and  loans 
would  be  required  in  case  of  a  conflict  with  a  foreign  nation. 
He  thought  that  these  duties  might  be  doubled  without 
inconvenience  or  danger.  A  more  suggestive  intimation  could 
not  have  been  given  to  the  domestic  manufacturers;  in  conse- 
quence of  it,  petitions  poured  in  from  all  quarters,  and  received 
favorable  consideration  on  the  part  of  the  Congressional  com- 

*  This  additional  list  included  the  duty  on  black  quart  bottles,  men- 
tioned in  the  preceding  chapter. 

f  In  the  "  Digest  of  Manufactures  of  1810,"  the  total  value  of  domestic 
products  is  estimated  at  $120,000,000. 


CHAPTER  VI.  131 

mittees  to  whom  they  were  referred.  The  protection  of  the 
domestic  maimfactnre  of  ardent  spirits  from  foreign  materials 
was  not  again  prayed  for  since  the  rejection  of  the  petition 
mentioned  in  the  last  chapter ;  but  the  Secretary  of  the  Treasury, 
who,  unlike  his  predecessors,  ignored  the  moral  side  of  the  ques- 
tion, and,  unless  forced  to  do  otherwise,  treated  the  internal  liquor 
traffic  as  a  sort  of  political  touch-me-not,  repeatedly  expressed 
the  opinion,  that  these  articles  could  well  bear  additional  duties. 
Thus  when,  on  the  18th  of  January,  1811,  he  was  asked  to 
give  his  opinion  as  to  what  particular  articles  could,  without 
injury,  be  taxed  more  heavily  than  they  were  at  the  time — the 
object  being  to  make  good  the  deficiency  likely  to  grow  out  of 
a  proposed  inhibition  of  the  importation  of  articles  coming 
from  Great  Britain  and  her  colonies — he  stated  that  spirits, 
wines,  teas,  sugar  and  coffee  would  under  any  circumstances 
continue  to  be  imported,  and  that  therefore  an  increase  of 
duties  on  these  articles  would  be  most  productive. 

Seeing  that  the  liquor  question  had  proved  such  a  danger- 
ous stumbling-block  to  former  administrations,  it  is  not  much 
to  be  wondered  at  that,  by  a  tacit  understanding  on  the  part 
of  the  executive  officers,  a  noli-me-tangere  policy  was  pursued 
in  all  matters  relating  to  country  distilling.  Yet  it  must  not 
be  concluded  from  this,  that  the  temperance  movement  was 
entirely  lost  sight  of.  While  no  one  seemed  sufficiently  coura- 
geous to  take  up  the  gauntlet  thrown  down  by  the  distilling 
farmers  of  the  country,  the  idea  of  diverting  popular  taste 
from  distilled  to  fermented  liquors  continued  to  be  agitated,  as 
has  been  seen  from  the  Digest  of  Manufactures  of  1810. 
That  the  manufacturers  of  malt  liquors  were  fully  conscious  of 
this  favorable  side-current  of  opinion,  appears  from  a  petition 
of  a  number  of  New  York  brewers,  submitted  to  the  House 
of  Kepresentatives  on  the  3rd  of  February,  1812,  in  which 
the  prayer  for  protection  was  justified  in  the  following 
words : 


132  LIQUOR   LAWS    OF   THE   mSTTED    STATES. 

It  is  not  for  us  to  expatiate  on  tlie  benefits  wliicli  may  result  to  the 
community,  as  to  tlie  preference,  in  point  of  liealth,  wliicli  malt  liquor  may 
Lave  to  that  of  ardent  spirits,  or  of  the  policy  of  encouraging  the  one,  and 
of  discouraging  the  other,  in  a  moral  point  of  view  ;  these  are  considera- 
tions, so  connected  with  individual  and  general  good,  and  so  according  with 
the  system  adopted  by  Congress  promoting  the  manufactories  of  our  coun- 
try, and  so  congenial  with  the  spirit  of  the  nation,  that  we  shall  forbear 
expressing  much  on  the  subject." 

The  impending  declaration  of  war  against  Great  Britain 
furnished  a  temporary  solution  of  the  mooted  question  of  Pro- 
tection in  all  its  far-reaching  and  multiform  ramifications. 
What  to  Gallatin  threatened  to  become  a  Gordian  knot  was 
now  cut  asunder  by  the  sword  of  war.  The  same  calamitous 
occurrence  completely  subverted  that  financier's  fiscal  policy 
and  induced  a  qualified  return  to  Hamiltonian  principles  of 
taxation.  "When  the  means  for  the  preparations  for  war  were 
being  discussed,  a  very  extensive  armament  having  already 
been  decided  upon,  Gallatin,  on  the  9th  of  January,  1812,  in 
answer  to  an  inquiry  made  by  the  House,  proposed  among 
other  means  of  revenue,  the  imposition  of  a  stamp  duty  ;  a 
direct  tax;  duties  on  carriages,  auction-sales,  refined  sugar, 
and  spirits  ;  duties  on  licenses  to  distillers  and  to  retailers  of 
wines,  spirits,  and  any  other  species  of  merchandise.  Com- 
pelled by  the  inflexible  logic  of  events  to  accommodate  himself 
to  a  public  recantation  of  nearly  all  his  strictures  and  criticisms 
on  the  official  acts  of  his  first  predecessor  ;  forced  to  recom- 
mend the  very  measures  the  application  of  which  he  had  erst- 
while characterized  as  unjust,  vexations  and  oppressive — he 
naturally  strove  to  present  plausible  excuses  for  his  sudden 
conversion  to  the  fiscal  creed  of  his  former  opponents,  and  to 
show  that,  in  his  case,  circumstances,  difiering  essentially  from 
those  of  the  Hamiltonian  era,  rendered  necessary  and  proper 
what  formerly  was  unnecessary  and  improper.  In  this  attempt 
he  was  least  successful  so  far  as  his  recommendation  relative 
to  duties  on  domestic  spirits  was  concerned  ; — in  truth,  in  his 


CHAPTER   VI.  133 

argnmeT?"/  in  fnvor  of  such  taxes  he,  unconsciously  perhaps, 
adopted  Hamilton's  language,  introducing  his  remarks  with 
this  sentence : 

There  is  not  any  more  elegible  object  of  internal  taxation  than  ardent 
Ipirits. 

It  was  the  mode  of  such  taxation  to  which  he  now  confined 
his  objections,  and  here  a  touching  solicitude  for  the  welfare  of 
country  distillers — a  powerful  body  of  voters — was  again  per- 
mitted to  shape  the  guide  for  legislation.  He  deemed  objec- 
tions to  an  excise  on  sjjirits  particularly  strong  with  respect  to 
persons  who  were  not  professional  manufacturers,  and  who, 
only  occasionally,  distilled  the  produce  of  their  farms ;  and 
even  as  to  them  he  wished  to  have  a  distinction  made  between 
farmers  who  distilled  fruit,  and  those  who  used  grain  or  other 
material.  His  proposition  in  relation  to  this  subject  was 
couched  in  the  following  words : 

"  That  duties  on  the  quantity  of  spirits  distilled  should  be  levied  only 
on  spirits  distilled  from  foreign  materials,  at  the  rate  of  ten  cents  per  gal- 
lon, distilled,  and  on  other  distilleries  employing  stills,  the  aggregate  of 
which  shall  contain  more  than  four  hundred  gallons,  at  the  rate  of  three 
cents  per  gallon,  distilled  ;  and  that,  instead  of  a  duty  on  spirits  or  of  licen- 
ses in  proportion  to  the  time  employed,  all  other  distilleries  should  only  pay 
an  annual  tax  of  five  dollars  for  each  still  solely  employed  in  the  distillation 
of  fruit,  and  of  fifteen  dollars  for  each  still  otherwise  employed." 

Excepting  the  rates,  his  proposed  license-system  corres- 
ponded with  that  introduced  during  Washington's  adminis- 
tration. Ketailers  of  wine  and  of  spirits  generally  were  to 
pay  twenty  dollars  annually,  and  retailers  of  domestic  spirits 
fifteen  dollars.  The  amount  of  revenue  to  be  derived  from 
the  manufacture  of  spirits  was  estimated  at  $400,000 ;  that 
from  licenses  at  $50,000,  including  those  which  were  to  be 
granted  to  retailers  of  foreign  merchandise.  The  timid,  al- 
most apologetic  manner  in  which  the  taxing  of  country  stills 
was  proposed  is  easily  traceable  to  the  occurrences  described 


134  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

in  previous  chapters  ;  it  is  so  much  in  the  sense  of  a  political 
captatio  henevolentiae  that  a  search  for  other  motives  seems 
superfluous.     Yet,  in  justice  to  truth,  it  must  be  stated  that 
there  was  at  the  time  a  general  inclination,  felt  alike  in  many 
countries  of  Europe  and  in  the  United  States,  to  take  it  for 
granted  that  unrestricted  country  distilling  was  an  indispen- 
sable  adjunct  of  husbandry,  enhancing  or   depreciating  the 
value  of  agricultural  labor  in  proportion  to  the  greater  or  les- 
ser degree  in  which  it  was  practised.     This  opinion  prevailed 
to  an  alarming  extent  in  the  Scandinavian  countries  and  the 
northern  parts   of  Germany,  and  in  no  small  degree  in  our 
country.     Among  the  advantages  attributed  to  this  primitive 
manufacture  was — to  quote  but  one  more  in  addition  to  the 
many  already  cited — the  security  it  was  said  to  afford  against 
the  desolation  of  possible  famines,  inasmuch  as  the  cereals  used 
for  distillation,  in  times  of  plenty,  would  form  a  surplus  of 
agricultural  produce  available  for  milling  purposes,  in  times  of 
want.     It  is  a  matter  for  conjecture,  however,  whether  Galla- 
tin would  have  allowed  such  considerations  to  determine  his 
propositions,  if  his   antecedents  had  not   placed  him  in  the 
foremost  ranks  of  those  who  held  a  restriction  of  country  dis- 
tilling to  be  unrepublican  in  theory,  and  oppressive  in  practice. 
As  was  to  be  foreseen,  the  legislative  majority,  which  in  mat- 
ters of  finance  had  been  accustomed  to  follow  Gallatin's  lead, 
could  not,  at  such  short  notice,  be  induced  to  reconcile  what  was 
now  asked  of  them  with  what  they  had  been  taught  to  regard  as 
the  only  proper  and  popular  course.     Even  after  war  had  been 
declared,  and  when  the  prospects  of  raising  suflicient  revenue  for 
the  defrayal  of  extraordinary  expenses  seemed  anything  but 
brilliant,  this  plan  of  imposing  direct  and  internal  taxes  failed 
to  find  favor.     It  was  reserved  for  a  future  day,  when  the  exi- 
gencies of  war,  arousing  the  patriotism  of  the  people,  might 
be  expected  to  so  operate  on  popular  disposition  as  to  win  its 
approval  for  any  measure  deemed  essential  to  the  achievement 


CHAPTER    VI.  -  135 

of  victory.  Increased  import  duties  were  the  only  source  of 
_  revenue  applied  immediately  after  the  declaration  of  war. 
The  tariff  Act  of  July  1,  1812,  imposed  an  addition  of  100  per 
cent,  on  all  duties  hitherto  levied  upon  goods,  wares  and  mer- 
chandise imported  into  the  United  States,  with  a  further 
addition  of  10  per  cent,  upon  goods  imported  in  foreign  vessels. 
The  authorizing  of  new  loans  to  the  amount  of  twenty-seven 
millions,  and  the  issuance  of  treasury  notes  to  the  amount  of 
five  millions  were  depended  upon  for  the  discharge  of  immediate 
obligations  necessarily  contracted  in  the  prosecution  of  the 
war  which,  meanwhile,  had  been  declared  and  carried  on  with 
varying  success  on  land  and  sea.  When  the  thirteenth  Congress 
convened,  in  its  first  session  (May  24,  1813),  Madison  in  his 
annual  message  represented  the  financial  condition  of  the 
government  to  be  such,  as  to  require  the  development  of  new 
sources  of  revenue;  unless  this  was  done,  the  revenues  for 
1814,  accruing  under  existing  provisions,  would  prove  insufii- 
cient  to  cover  the  ordinary  expenses,  and  the  increased  interest 
on  the  public  debt.  As  to  the  nature  of  these  additional  reve- 
nues, Madison  stated  that  the  object  in  view  could  be  best 
attained  by  a  well-digested  system  of  internal  taxes,  "  which 
will  have  the  effect,  both  of  abridging  the  amount  of  neces- 
sary loans,  and  of  placing  the  public  credit  on  a  more  satis- 
factory basis."  The  Committee  of  Ways  and  Means  of  the 
House,  in  reporting  favorably  on  this  part  of  the  President's 
message,  recommended  the  re-introduction  of  the  former  in- 
ternal revenue  system,  on  the  ground,  that  its  principle  had 
before  been  sanctioned  b^  a  vote  of  the  House  of  Eepresen- 
tatives,  and  was  therefore  preferable  to  a  new  system,  the  prin- 
ciples and  details  of  which  could  not,  under  the  pressure  of 
circumstances,  receive  that  mature  co7isideration  which  should 
precede  its  adoption.  Their  proposition  was,  that  a  direct  tax 
amounting  to  $3,000,000  be  levied,  and  internal  duties  be  laid  on 
stills,  refined  sugar,  retailer's  licenses,  sales  of  auction,  carriages, 


136  LIQUOR   LAWS    OF   THE    UNITED    STATES. 

bank  notes,  negotiaible  paper  and  salt,  amounting  in  the  aggre- 
gate to  $5,465,000.     A.t  the  same  time  the  committee  submitted 
a  separate  bill  for  each  of  the  objects  of  taxation  named.     By 
an   act   "  for  the  assessment   and   collection  of   direct  taxes 
and  internal  duties,"  approved  July  22, 1813,  the  old  system  of 
internal  revenue,  on  a  larger  scale,  of  course,  was  re-introduced 
with  some  modifications  ;  and  on  the  21:th  of  the  same  month 
the  act  laying  duties  on  hcenses  to  distillers  of  spirituous  li- 
quors received  the  President's  approval.     The  first  section  of 
this  law  provides  that  every  owner  of  a  still  or  other  imple- 
ment used  for  distilling  spirits  shall  take  out  a  licence,  and,  if 
the  amount  of  duties  to  be  paid  exceed  the  sum  of  five  dol- 
lars, shall  execute  a  bond  conditioned  for  the  payment  of  said 
duties  at  the  end  of  four  months  after  the  expiration  of  the 
term  for  which  the  licenses  were  granted.     The  second  section 
provides  "  that  the  licenses  aforesaid  shall  and  may  be  granted 
for  and  during  the  following  terms  or  periods,  and  on  the  pay- 
ment or  securing  of  payment  as  aforesaid  of  the  duties  under- 
mentioned, namely  :  For  a  still  or  stills  employed  in  distilling 
spirits  from  domestic  materials,  for  a  license  for  the  employ- 
ment thereof  for  and  during  the  term  of  two  weeks,  nine  cents 
for  every  gallon  of  the  capacity  of  every  such  still,  including 
the  head  thereof;    for  one  month,  eighteen  cents;  for  two 
months,  forty-two  cents  ;  for  four  months,  fifty-two  cents  ;  for 
six  months,  seventy  cents ;  for  one  year,  one  dollar  and  eight 
cents.     Half  these  rates  of  duty  were  to  be  paid  upon  stills 
employed  wholly  in  the  distillation  of  roots.     For  stills  used 
in  distilling  spirits  from  foreign  material  the  licenses  were 
as  follows  :  for  the  employment  of  every  still  or  stills  during 
one  month,  twenty-five  cents  for  each  gallon  of  the  capacity , 
for  tln-ee  months,  sixty  cents ;  for  six  months,  one  dollar  and 
five  cents  ;  for  one  year,  one  dollar  and  thirty-five  cents.     For 
every  boiler,  however  constructed,  employed  for  the  purpose 
of  generating  steam  in  distilleries,  double  the  amount  on  each 


CHAPTEK   VI.  137 

gallon  of  its  capacity,  which  would  be  payable  for  said  license 
if  granted  for  the  same  terms  and  to  employ  the  same  materials 
for  a  still. 

Shortly  after  the  passage  of  this  law,*  the  following  taxes 
were  imposed  on  licenses  to  retailers  of  spirits,  wines,  and  mer- 
chandise "  in  citieS;  towns  or  villages,  containing  300  inhabi- 
tants within  the  limits  of  one  mile  square,  viz  :  to  retailers  of 
wines  alone,  twenty  dollars ;  of  spirits  alone,  twenty  dollars ;  of 
domestic  spirits,  fifteen  dollars ;  of  merchandise  other  than  wine 
and  spirits,  ten  dollars  ;  of  merchandise  including  both  intoxi- 
cants twenty-five  dollars. 

The  vote  of  the  House  on  the  final  passage  of  the  bill  imposing 
duties  on  licenses  and  distillers  stood  eighty-five  to  forty-nine. 
The  time  for  remonstrances  on  the  part  of  the  majority  against 
such  measures  of  revenue,  had  passed.  A  preponderance  of  re- 
verses over  successes;  the  rapid  progress  of  Indian  hostilities,  the 
partial  blockade  of  the  coast,  and,  before  that,  the  operations 
of  the  Embargo  and  Non-importation  Acts,  by  which  the  exter- 
nal revenue  was  reduced  to  a  minimum,  and  lastly  the  dispro- 
portion between  the  amounts  of  the  loans  and  the  provisions 
made  for  their  ultimate  liquidation, — all  these  things  combined 
to  render  an  exercise  of  party  discipline  indispensable.  Even 
with  the  increase  of  revenue  from  internal  and  direct  taxes, 
the  collection  of  which  was  not  to  commence  until  the  year 
after  the  passage  of  the  law,  the  expenses  of  carrying  on  the 
war  could  not  be  covered,  and  it  was  to  be  foreseen  that,  simul- 
taneously with  the  authorization  for  new  loans,  an  extension  of 
the  new  system  of  taxation  would  have  to  be  effected.  Both 
Campbell,  who  succeeded  Gallatin  in  the  Treasury  Depart- 
ment, and  his  successor,  Dallas,  soon  became  convinced  that 
the  only  safety  of  the  country  lay  in  taxing  the  wealth  of  the 
nation,  in  all  its  available  forms,  to  whatever  degree  the  exi- 


*  Act  of  August  2,  1813. 


138  LIQUOR   LAWS    OF   THE   UNITED    STATES. 

o-eiicies  of  war  might  dictate.  One  of  the  schemes  of  the 
latter  financier,  submitted  to  Congress  on  the  17th  of  October, 
1814,  included  the  taxing  of  a  great  number  of  articles  of 
domestic  manufacture,  among  them  ale,  'porter  and  strong 
'beer  /  and  another  extended  to  silverware,  household  furniture, 
gold  and  silver  watches ;  to  incomes,  and  legal  documents  of 
diverse  descriptions. 

When  these  suggestions  were  made,  the  fortunes  of  war 
had  turned  against  the  Union :  The  entire  coast  had  been  block- 
aded— encircled,  as  it  were,  by  a  "  wooden  wall ;"  Maryland 
and  Massachusetts  had  been  invaded ;  the  city  of  "Washington, 
fallen  into  the  hands  of  the  enemy,  was  ransacked  and  partly 
destroyed  by  fire ;  Baltimore  had  been  attacked  ;  a  British  war- 
ship had  ascended  the  Potomac  as  far  as  Alexandria,  Ya. ;  and 
the  financial  condition  of  the  country  had  become  extremely 
precarious,  indeed,  the  Union  was  practically  bankrupt.  These 
reverses  were  slightly  offset,  it  is  true,  by  the  victory  at  Platts- 
burg,  the  brave  defense  of  Baltimore  and  the  comparatively 
successful  operations  against  the  British  in  the  South  ;  yet,  all  in 
all,  the  Union  never  was  in  narrower  straits  than  at  that  time. 
Under  such  circumstances,  the  state  of  affairs  appealing  power- 
fully to  the  patriotism  of  the  people  and  exacting,  in  self- 
defense,  unusual  sacrifices,  it  was  but  natural  that  the  old  claim 
of  the  domestic  distillers,  formerly  magnified  and  dignified 
into  a  so-called  question  of  principle,  became  completely  sub- 
merged in  the  flood  of  great  events.  It  was  for  this  reason  that 
the  recommendation  of  Dallas,  to  increase,  far  beyond  existing 
precedents,  the  internal  duties  on  spirits,  was  accepted  as  a  mat- 
ter of  course  and  encountered  not  a  single  challenge  that  might 
have  reminded  one  of  the  inveterate  prejudice  so  often  referred 
to  in  these  pages.  It  was  contemplated  by  Dallas  to  tax  spirits, 
alike  from  domestic  and  foreign  materials,  at  25  cents  per  gal- 
lon in  addition  to  the  duties  already  levied  under  the  previous 
law ;  and  in  his  computation  of  the  probable  income  from  this 


CHAPTER   VI.  139 

additional  duty  he  assumed  24,000,000  gallons  to  be  the  annual 
production  of  spirits,  excepting  the  products  of  stills  of  a 
capacity  of  fifty  gallons.  The  tax  vrhich  he  had  also  proposed 
to  levy  on  ale,  porter  and  strong  beer  was  estimated  to  yield 
a  revenue  of  $120,000,  at  2  cents  per  gallon,  on  a  domestic  pro- 
duction of  6,000,000  gallons,  annnually. 

A  new  excise  law  was  passed  and  approved  before  the  end 
of  the  year  1814,  which  provided  that,  after  the  1st  of  Feb- 
ruary, 1815, 

There  shall  be  paid  upon  all  spirits,  unless  specifically  excepted,  which 
after  said  day  shall  be  distilled  within  the  United  States  in  any  still  or  stills, 
or  in  any  other  vessel,  or  by  aid  of  any  boilers,  as  defined  in  the  Act  of  July 
24th,  1813,  in  addition  to  the  duties  payable  for  licenses  therefor,  the  duties 
following,  that  is  to  say  :  For  every  gallon  of  such  spirits  distilled  wholly  or 
in  part  from  foreign  material,  twenty  cents  ;  and  for  every  gallon  of  such 
spirits  distilled  from  domestic  materials,  twenty  cents. 

In  many  respects  this  new  law  was  far  more  rigorous  than 
its  immediate  predecessor,  embodying  many  of  the  provisions 
originally  framed  by  Hamilton  in  his  endeavor  to  prevent  fraud. 
Indeed,  in  the  matter  of  entries  under  oath,  and  the  giving  of 
security  for  the  payment  of  the  taxes  as  well  as  in  regard  to 
the  penalties  imposed  for  evasions  and  violations  of  the  act, 
false  swearing,  etc.,  the  law  fully  merited  all  the  well-known 
objections  urged  against  the  first  Federal  excise  laws  ;  while, 
in  other  respects,  it  relaxed  somewhat  the  restrictions  placed 
upon  distillers,  by  diminishing  the  minimum  terms  for  which 
licenses  were  to  be  granted,  from  a  fortnight  to  one  week,  and 
by  providing  for  a  corresponding  decrease  of  duties  to  be  paid 
on  the  capacity  of  the  stills  so  employed.  Country  distillers, 
that  is  to  say :  owners  of  one  still  only,  whose  capacity  did 
not  exceed  one  hundred  gallons,  and  owners  of  boilers,  whose 
capacity  did  not  exceed  fifty  gallons,  had  the  option  to  pay 
according  to  the  old  law,  or  twenty  cents  for  every  gallon  dis- 
tilled.    Distillers  of  domestic  spirits  were  accorded  the  right 


140  LIQUOK   LAWS    OF   THE    UNITED    STATES. 

to  sell  their  product  in  any  cjuantitj,  not  less  than  one  gallon, 
thus  making  them,  if  they  elected  to  avail  themselves  of  the 
privilege,  distillers  and  retailers  at  the  same  time.  A  few  days 
after  the  passage  of  this  act,*  the  duties  on  licenses  to  retailers 
of  wines  and  spirits  were  increased  firty  per  cent.  Although  the 
levying  of  an  internal  tax  upon  malt  liquors  had  been  recom- 
mended simultaneously  with  the  increase  of  taxes  on  ardent 
spirits,  it  was  not  until  the  following  January — when  house- 
hold furniture,  watches  and  a  great  number  of  articles  of 
domestic  manufacture  were  taxed — that  the  proposition  was 
acted  upon.  An  ad  valorem  duty  of  six  per  cent,  was  then 
imj^osed  on  ale,  porter  and  strong  beer,  being  a  very  low  rate 
compared  with  the  taxes  imposed  on  some  articles  of  luxury — 
on  manufactured  tobacco,  for  instance,  the  duty  on  which  was 
fixed  at  twenty  per  cent,  ad  valorem. 

It  is  needless  to  narrate  how,  in  the  midst  of  multiply- 
ing fiscal  troubles,  just  at  a  time  when  changeable  Bel- 
lona  began  to  smile  upon  our  colors,  the  treaty  of  peace 
was  promulgated  (February  ITth),  and  put  a  period  to  the 
lateral  and  upward  movement  of  taxes  and  tax-rates.  The 
legislative  minds,  who,  but  four  weeks  ago  had  been  occu- 
pied in  devising  new  sources  of  revenue,  were  now  turned 
to  the  task  of  reducing  the  income.  A  strong  disposition 
was  manifested  to  at  once  abolish  all  internal  taxes ;  but 
that  would  have  robbed  the  Secretary  of  the  Treasury  of  the 
ability  to  bring  order  out  of  the  chaos  into  which  the  war  had 
thrown  the  financial  affairs  of  the  country.  The  doubling  of 
import  duties  had  been  adopted  as  a  war  measure,  and  must 
therefore  be  discontinued  with  the  cessation  of  hostilities ;  the 
law  in  relation  to  it  became  inoperative  by  limitation,  except 
so  far  as  it  referred  to  ardent  spirits.  In  view  of  this  decrease 
of  revenues,  from  a  source  which  was  again  beginning  to  flow 


*  December  31,  1814. 


CHAPTER   VI.  141 

freely,  the  total  abolition  of  internal  taxes  could  not  be  thought 
of.  In  order  to  facilitate  a  gradual  reduction  of  these  taxes, 
however,  it  was  proposed  to  retain  the  war  tariff  until  the  30th 
of  June,  1816.*  This  income  secured,  Dallas  would  have  re- 
modelled the  fiscal  system  on  the  basis  of  certain  permanent 
internal  taxes  and  a  comprehensive  customs  tariff,  the  latter  to 
be  determined  upon  in  accordance  with  the  requirements  of  a 
protective  policy.  It  is  worthy  of  note  that  Dallas,  while 
recommending  the  retention,  among  others,  of  the  inter- 
nal taxes  on  refined  sugar,  proposed  to  abolish  entirely  the 
duties  on  distilled  spirits,  continuing  in  force  only,  at  double 
rates  however,  the  duties  imposed  by  the  Act  of  July  21:th, 
1813,  on  licenses  to  distillers.  The  abolition  of  internal  duties 
on  all  other  articles  of  domestic  manufacture,  including  fer- 
mented liquors,  and  the  reduction  of  taxes  on  licenses  to 
retailers  were  also  recommended.  Most  of  the  proposed  re- 
ductions were  speedily  effected,t  some  of  the  new  rates 
remaining  in  force  until  the  23rd  of  December,  1817,  when  the 
fifteenth  Congress  abolished  all  internal  duties. 

At  the  opening   of  the   first   session    of    this   Congress, 
Monroe,  who  had  in  the  meantime  succeeded  Madison  in  the 


*  Report  of  the  Secretary  of  tlie  Treasury,  Am.  State  Papers  ;  Finance, 
vol.  Ill,  p.  16. 

f  By  the  Act  of  April  19,  1816,  the  duties  on  distillers'  licenses  were 
fixed  as  follows,  the  tax  being  on  every  gallon  of  the  capacity  of  each  still 
or  boiler. 

DOMESTIC  MATERIALS.  FOBEIGN  MATERIAL. 

For  one  week, 4^  cents.  For  one  month 23  cents. 

"    two      "    9        "       "    two  months 46      •' 

"    one  month 18        "       "    three     "      68      " 


two 

three 

four 

five 

six 

one  year, 


..36  "  "  four      "      90 

..54  "  "  sis        "      1.34 

..73  "  "  eight     "      1.86 

..90  "  "  one  year,      2.70 

,1.08 

.2.16  " 


142  LIQUOK    LAWS    OF    THE    UNITED    STATES. 

Presidency,  urged  the  discontinuance  of  the  internal  revenue 
system  in  these  words  : 

It  appearing  that  tlie  revenue  arising  from  imposts  and  tonnage,  and 
from  the  sale  of  public  lands,  will  be  fully  adequate  to  the  support  of  the 
Civil  Government,  of  the  present  Military  and  Naval  Establishments,  in- 
cluding the  annual  augmentation  of  the  latter  to  the  extent  provided  for,  to 
the  payment  of  the  interest  of  the  public  debt,  and  to  the  extinguishment 
of  it  at  the  times  authorized,  without  the  aid  of  internal  taxes,  I  consider 
my  duty  to  recommend  to  Congress  their  repeal. 

From  the  tenor  of  the  rest  of  that  part  of  the  message 
which  relates  to  this  subject,  it  is  evident  that  Monroe  approved 
of  internal  taxes  only  in  so  far  as  their  introduction  was  exacted 
by  the  insufficiency  of  external  duties  to  meet  the  demands 
upon  the  treasury.  This  view  evidently  bore  a  causal  relation 
to  Monroe's  desire,  expressed  in  the  same  message,  of  seeing 
domestic  manufactures  protected  and  developed.  In  this  con- 
nection he  wrote  : 

Our  manufactures  will  require  the  continued  attention  of  Congress. 
The  capital  employed  in  them  is  considerable,  and  the  knowledge  acquired 
in  the  machinery  and  fabric  of  all  the  most  useful  manufactures  is  of  great 
value.  Their  preservation,  wMcJi  depends  on  due  encouragement,  is  coimected 
with  the  highest  interests  of  the  nation. 

The  two  quotations  may  be  taken  as  an  epitome  of  the 
policy  which  shaped  the  laws  of  taxation  during  the  succeeding 
thirty  years.  It  remains  to  be  stated,  that  in  the  year  previous  to 
Monroe's  inauguration,  when  the  limitation  of  the  prolonged 
war  tariff  necessitated  a  re-arrangement  of  imposts,  Dallas 
submitted  a  report  on  manufactures,  in  which  he  advocated  the  • 
encouragement  and  protection  of  domestic  industries  in  much 
the  same  spirit,  though  not  in  the  same  brilliant  manner,  as 
Hamilton  had  done  before  him.  Dividing  the  products  of 
skilled  labor  into  three  classes,  according  to  their  ability  or 
rather  inability  to  compete  with  foreign  products,  he  proposed 
as  many  grades  of  duties,  so  constituted  as  to  give  greatest 
advantages  to  those  manufactures  which  seemed  least  capable  of 


CHAPTER   VI.  143 

witlistanding  competition  from  without.  In  their  arguments 
and  votes  upon  these  propositions  the  majority  of  the  House, — 
a  very  small  one,  it  is  true — recorded  themselves  as  Protection- 
ists pure  and  simple.  Clay  even  went  so  far  as  to  reverse  the 
maxims  hitherto  enunciated,  by  asserting  that  in  imposing  im- 
port duties,  revenue  was  merely  an  incidental  consideration,  and 
that  the  primary  object  was,  to  give  the  necessary  support  to 
agriculture,  manufactures  and  commerce.  The  Senate  to  a 
certain  extent  curbed  the  high  protective  tendency  of  the 
House,  and  the  result  was  a  compromise,  by  which  an  exten- 
sion, at  least,  of  the  protective  system  was  hindered.  As  far  as 
spirits  were  concerned,  however,  the  new  tariff  was  decidedly  of 
a  protective  character ;  for  in  this  instance,  as  before,  the  articles 
which  commended  themselves  to  the  greatest  share  of  protec- 
tion were  those  whose  manufacture  called  into  requisition  the 
products  of  domestic  husbandry  ;  and  among  these  none  had 
attained  to  such  importance  as  the  spirits  distilled  from  grain 
and  fruit.  It  may  therefore  be  safely  asserted  that  the  change 
in  the  rates  of  import  duties  effected  at  that  time,  grew  out  of 
the  predominance  of  Protectionist  predilections,  kept  within 
bounds  by  the  determined  efforts  of  the  minority  in  Congress. 
Spirits  from  grain  were  taxed  at  from  forty -two  to  seventy-five 
cents  per  gallon,*  according  to  strength  ;  all  other  spirits,  from 
thirty-eight  to  seventy  cents  per  gallon,  according  to  the  same 
test ;   the  lowest  being  ten  per  cent,  below,  the  highest  over 


*  Spirits,  from  grain 3d  proof,  48  cents. 

"      4tli       "       53       " 

"      5tli       "       60       '- 

"  "         "      above  5tli       "       75       " 

Spirits,  from  material  other  than  grain 1st  and  2d  proof,  38       ' 

"     3d       "       43       " 

"     4th       "       48       " 

"     5th       "      57       " 

"  "         "  "         "         "     above  5th       "       75       " 

(Statutes  at  Large,  vol.  iii. ,  chap.  cvii. ) 


144  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

forty  per  cent,  above  proof,  as  determined  by  a  particular  hydro- 
meter. Ale,  porter,  and  beer,  in  bottles,  paid  fifteen  cents ;  in 
casks  ten  cents  per  gallon.  The  duties  on  wines,  specially 
named,  varied  between  $1.00  and  40  cents  per  gallon,  according 
to  the  quality  of  the  article  ;  all  other  wines  imported  in  casks 
were  taxed  25  cents  per  gallon. 

The  period,  brief  though  it  was,  during  which  the  excise 
law  remained  in  force  would  in  every  way  be  excellently  suited 
for  a  test  of  the  effects  of  internal  restrictions  upon  the  manu- 
facture of  the  articles  in  question  ;  all  the  more  suited,  in  fact, 
because,  in  consequence  of  double  import  duties,  of  the  Em- 
bargo and  Non-importation  Acts,  and,  after  their  repeal,  of  the 
unsafety  of  ocean  traffic — the  domestic  manufacturers  for  a 
time  had  an  unobstructed  field  of  operation.  Unfortunately, 
however,  neither  the  rej^orts  of  the  Treasury  Department  nor 
the  census  of  1820,  afford  anything  like  adequate  material  for 
a  comprehensive  comparison.  To  begin  with,  it  cannot  be 
ascertained,  save  by  an  approximation,  based  on  a  few  vague 
and  unreliable  factors,  what  quantity  of  spirits  was  produced 
in  the  country  ;  although  it  is  to  be  presumed  that  when  the 
importation  of  the  article  had  dwindled  from  nearly  five 
millions  in  1812,  io  half  of  one  million  gallons  in  1814,  the 
growth  of  domestic  distillation  must  have  been  materially 
enhanced.  There  is  no  way  of  ascertaining  the  proportions 
of  this  growth.  It  is  reasonable,  furthermore,  to  assume  that, 
when  the  restraints  upon  importation  were  removed,  the 
internal  taxes  operated  restrictively  upon  domestic  production ; 
but  here  again  the  revenue  returns  of  the  Treasury  Depart- 
ment are  very  unsatisfactory  as  to  these  and  the  preceding 
years.  Taking,  however,  the  figures  whose  correctness  can 
be  relied  on,  it  will  be  found  that  the  higher  excise  duties 
imposed  by  the  later  law  considerably  diminished  the  produc- 
tion of  ardent  spirits.  The  estimate  submitted  by  Dallas 
was   premised  on   an  annual   production   of    24,000,000  gal- 


CHAPTER    Vr. 


145 


Ions  of  such  spirits  as  were  contemplated  to  be  taxed  accord- 
ing to  quantit}^ — an  estimate  which,  taking  the  census  of  1810 
as  a  standard,  evidently  fell  below  the  actual  figure.  When 
the  income  from  internal  duties  was  highest,  it  exhibited  but 
a  little  over  10,000,000  gallons  as  the  quantity  of  such  spirits 
distilled  during  the  year.  The  following  exhibit  bears  out 
this  statement : 

1815. 

On  licenses  for  stills  and  boilers  employed  on 

Domestic  materials $750,503 

Foreign  materials 91,616 


843,119 


On  spirits  distilled  from  domestic  material 

At  20  cents  per  gallon $1,305,160 

At25     "  "  '^42,398 

On  spirits  distilled  from  foreign  materials 

At  20  cents  per  gallon 159,229 


2,206,787 
$3,048,906 


18  16. 

On  licenses  for  stills  and  boilers  employed  on 

Domestic  materials,   $S24,443 

Foreign  materials 123,990 


$948,434 


On  spirits  distilled  from  domestic  materials. 

At  20  cents  per  gallon $732,644 

At25     "  "  262,649 

On  spirits  distilled  from  foreign  materials 

At  20  cents  per  gallon 59,035 


$1,054,328 
$2,002,762 


146  LIQUOK    LAWS    OF   THE    UNITED    STATES. 

The  quantity  of  spirits  for  which  taxes  were  paid  on  the 
capacity  of  stills  cannot  be  correctly  stated  ;  it  was  estimated, 
however,  at  4,000,000  gallons.* 

Making  allowance  for  the  unpopularity  of  excises,  the  con- 
sequent proneness  of  distillers  to  evade  the  taxes,  the  deroga- 
tory influence  of  the  anti-war  party  upon  all  Administration 
measures,  the  comparative  novelty  of  the  revenue  system  and 
the  imperfect  mode  of  collection  growing  out  of  this  and  many 
other  untoward  circumstances — it  must  nevertheless  be  inferred 
from  the  foregoing  exhibits,  that  the  production  of  domestic 
spirits  was  considerably  diminished  by  reason  of  the  excise 
law.  From  all  available  official  documents  it  becomes  manifest 
that  the  difference  between  Dallas'  estimate,  and  the  amounts  of 
taxes  paid  in  1815  and  1816  (when  imports  had  risen  again  to 
4,030,470  and  6,910,807  gallons,  respectively)  is  due  to  the 
working  of  the  law  imposing  internal  duties.  Nowhere  is 
there  to  be  found  any  indication  of  an  open  opposition,  or 
of  evasions,  on  a  grand  scale,  of  the  excise  law ;  had  there  been 
either,  the  official  reports  on  the  subject  of  internal  taxes  would 
surely  have  treated  of  them  in  detail  and  at  length.  The 
absence  of  such  indications,  coupled  with  various  experiences 
—  between  which  and  the  present  observations  there  exist 
some  points  of  analogy — leads  to  the  presumption,  that,  now  as 
before,  the  excise  duties  had  precisely  that  restrictive  effect 
which  was  universally  predicted  for  them  in  Hamilton's  days, 
and  which  the  period  from  1791  to  1801,  compared  with  1810, 
showed  them  to  have  had.  If  no  figures  could  be  produced 
at  all  for  tiie  periods  under  consideration,  the  conclusion 
would  nevertheless  be  self-evident  that  the  consumption  of  the 
article  must  have  diminislied  in  proportion  to  the  increase  of 
its  cost,  provided  that  the  laws  occasioning  the  rise  of  prices 
were,  on  the  whole,  faithfully  executed  and  obeyed,  as  seems 
to  have  been  the  case  from  3  813  to  1818. 


*  Am.  State  Papers  ;  Finance,  vol.  VI.,  p.  37. 


147 

CHAPTEK   YI.  ^*' 


Had  a  dispassionate  treatment  of  the  question,  unhampered 
by  prejudices  on  the  one  hand,  and  Protectionist  proclivities 
on  the  other,  been  possible,  the  proposition  of  Dallas,  to  retam 
permanently  part  of  the  internal  revenues,  would  surely  have 
been  adopted,  at  least  so  far  as  distilled  spirits  were  concerned. 
As  it  was,  the  logical  consequences  of  the  idea  of  protection, 
operating  as  auxiliaries   to   the  repugnance  against   excises, 
contributed  in  no  small   degree  to  the  intensifying  of  those 
drinking  habits,  against  which  the  efforts  of  true  temperance 
advocates  have  from  the  beginning  been  directed.     Lest  mis- 
apprehensions arise  as  to  the  purport  of  this  averment,  the 
next  chapter  will  be  devoted  to  a  brief  exposition  of  the  inter- 
relations subsisting  between  the  cause  of  temperance  on  the 
one  hand,  and   Protection,  combined   with   the   aversion   to 
internal  taxes,  on  the  other. 


CHAPTEK    YII. 

THE  RELATION  WHICH  THE  KEPUGNAXCE  TO  EXCISES  AND  THE 
PROTECTIVE  IDEA  BORE  TO  THE  QUESTION  OF  TEMPERANCE. 
WHAT  THE  PROTECTION  OF  SPIRITS  WAS  INTENDED  TO  AC- 
COMPLISH FOR  AGRICULTURE. — THE  WISDOM  OF  PROTECTING 
SPIRITS,  AND  THE  DESIRABILITY  OF  PREVENTING  THEIR  EX- 
CESSIVE CONSUMPTION. WHY  EXCISES  WERE  NOT  PERMA- 
NENTLY   APPLIED    TO    ACCOMPLISH   THE    LATTER. IF    IT    BE 

PROPER  TO  USE  THE  TAXING  POWER  IN  ONE  FORM  IN  ORDER 
TO  CREATE  ANT)  EXTEND  MANUFACTURES,  IT  OUGHT  TO  BE 
PROPER  TO  USE  IT  IN  ANOTHER  FORM  FOR  RESTRICTING  THOSE 
INDUSTRIES  WHICH  MILITATE  AGAINST  SUCH  ECONOMIC  POL- 
ICY.— REASONS  FOR  ASSUUHNG  THAT  UNDER  CERTAIN  CIR- 
CUMSTANCES A  PERMANENT  EXCISE  ON  SPIRITS  WOULD  HAVE 
BEEN   FEASIBLE. — RESULTS  OF  ABSENCE    OF  INTERNAL  TAXES. 

EXCESSIVE   DRINKING    HABITS    OF   THE    RURAL    POPULATION 

AND  CONSEQUENT  REACTION,  LEADING  TO  THE  OPPOSITE  EX- 
TREME. 

No  attempt  will  be  made  to  enquire  into  the  expediency  of 
Protection  or  of  its  opposite.  Facts  must  be  taken  as  they  pre- 
sent themselves,  and  for  the  present  purposes  it  is  quite  suffi- 
cient to  know  that  the  majority  of  statesmen  of  the  intellect- 
ual caliber  of  Hamilton,  of  Monroe,  of  Dallas  and  others, 
familiar  with  the  resources  and  wants  of  the  country,  the  con- 
dition, abihty  and  requirements  of  labor  and  capital — coincided 
in  the  opinion,  that  to  foster  and  further  the  nascent  manufac- 
tories would  ultimately  re'dound  to  the  advantage  of  agricul- 
ture and  commerce,  and  thereby  enhance  the  welfare  and  pros- 
perity of  tlie  entire  Union.  This  conviction  gave  rise  to  the 
protective  tariffs  reviewed  in  the  preceding  chapters — a  con- 


CHAPTER  vn.  149 

victioii  which  the  authority  of  so  eminent  a  Free  Trader  as 
John  Stuart  Mill  seems  to  sustain  conditionally,  inasmuch  as 
this  economist  admitted   that  in  young  countries,  and  under 
certain  circumstances  and  environments,  Protection  might  be 
more  expedient  than  any  other  economic  policy.   In  examinino- 
the  arguments  produced  in  favor  of  Protection,  it  will  appear  that 
there  is  nothing  so  patent  to  the  least  acute  perception  than  the 
theory,  that  if  manufactures  were  to  be  protected  at  all,  none 
deserved  more  consideration   than   those  which  for  their  raw 
materials  depended  upon  the  products  of  domestic  husbandry. 
Applying  this  argument  to  grain  and  fruit  it  seemed  perfectly 
consistent  to  tax  foreign  spirits  to  such  an  extent  as  to  afford 
to  the  domestic  manufacture  a  decided  preponderance  of  com- 
petitive advantages  over  the  foreign  product.     But  what  valid 
reasons  were  there  why  the  article  so  protected  should  not,  by 
the  agency  of  an  internal  tax— much  lower,  of  course,  than  the 
import  duty — be  restricted  within  reasonable  bounds  ?     It  has 
been  seen  that  in  Congress  but  07ie  opinion  prevailed  as  to  the 
desirability — under   all   conceivable   aspects — of   diminishing 
the  consumption  of  ardent  spirits,  and  that  all  legislators  were 
in  accord,  either  in  their  zealous  advocacy,  or  their  unqualified 
approval  of  the  only  measure  which   popular   sentiment   ap- 
peared to  permit  them  to  apply  against  the  evil  effects  of  ex- 
cessive drinking  habits,  namely,  the  protection  and  encourage-, 
ment  of  breweries.     Under  the  circumstances  existing  at  the 
time  it  must  have  been  foreseen,  that  this  measure  could  at 
first  only  have  the  effect  of  a  feeble  palliative ;  that  it  required 
long  time  and  great  care  to  make  it  answer  its  purpose ;  that 
above  all  things,  it  required   the  very  reverse  of   that  policy 
which  tended  to  cheapen  ardent  spirits  in  proportion  as  it  fur- 
nished inducements  for  the  production  of  the  raw  materials  used 
in  their  manufacture.     To  apply  this  means  to  such  an  end, 
when  a  perfectly  legitimate  and  effective  agency  was  at  hand, 
may  be  likened  to  the  act  of  the  drowning  man,  who  grasps  at 


150  LIQUOK   LAWS    OF   THE   UNITED   STATES. 

a  straw,  while  a  boat,  offering  the  surest  means  of  rescue,  is 
within  his  reach.  Internal  taxes  would  certainly  have  accom- 
plished what  every  man  in  Congress  wished  to  see  realized. 
Why  were  they  not  applied  ?  The  repugnance  to  excises  is 
mentioned  as  the  principal  reason  ;  yet  whenever  the  product- 
iveness of  the  import  duties  failed  to  correspond  with  the  de- 
mands upon  the  treasury,  an  excise  on  spirits  was  at  once 
resorted  to  without  any  hesitation,  and  long  before  internal 
duties  were  imposed  upon  any  other  article ;  and  when,  with 
multiplying  exigencies,  the  latter  became  necessary,  they  were 
invariably  accompanied,  if  not  preceded,  by  an  increase  of 
existing  internal  taxes  on  spirits;  thus  showing  that,  on  account  of 
their  general  consumption,  no  less  than  by  reason  of  the  results 
of  their  excessive  use,  these  articles  were  regarded  as  the  first 
and  fittest  objects  of  extraordinary  tax  burdens.  Public  exi- 
gencies, then,  have  always  proved  stronger  than  the  aversion 
to  internal  taxes — an  aversion  which,  by  the  way,  had  lost 
much  of  its  power  after  the  suppression  of  the  first  attempt  to 
resist  such  taxation.  It  must  be  clear  that,  had  not  the  pro- 
tective policy  been  carried  to  such  an  extent  as  effectually  to 
predominate  over  all  other  considerations,  the  internal  taxation 
of  spirits  would  have  been  accepted  as  a  matter  of  fiscal  ne- 
cessity at  first,  as  a  matter  of  course  in  the  end. 

The  repugnance  to  excises  was  of  English  origin,  as  we  have 
seen;  to  make  its  prevalence  in  our  coun  try  appear  reasonable,  one 
would  have  to  assume  that  its  causes  were  the  same  in  America 
as  in  England.  But  such  an  assumption  would  have  no  foun- 
dation in  fact.  Consulting  Blackstone's  Commentaries  * — an 
authority  which  our  legislators  invariably  invoked  when  they 
inveighed  against  excises — it  will  be  found  that  the  eminent 
jurist  based  two  of  his  principal  objections  to  this  mode  of  tax- 


*  Blackstone's  Commentaries  on  the  Laws  of  England  ;  Vol.  I,  p.  317; 


American  reprint,  Chicago,  1871. 


CHAPTER  VII. 


161 


ation  on  tlie  fact,  that  in  order  to  prevent  fraud,  it  was  neces- 
sary (in  England)  "  to  give  the  officers  a  power  of  entering  and 
searching  the  houses  of  such  as  deal  in  excisable  commodities 
at  any  hour  of  the  day,  and,  in  many  cases,  of  the  night  like- 
wise," and  upon  the  further  fact,  that  the  proceedings  in  case 
of  transgressions  were  so  summary  and  sudden,  "  that  a  man  may 
be  convicted  in  two  days'  time  in  the  penalty  of  many  thou- 
sand pounds  by  two  commissioners,  to  the  total  exclusion  of 
the  trial  by  jury  and  disregard  of  the  common  law."  The 
reader  need  but  be  reminded  of  Hamilton's  masterly  exposi- 
tion of  the  American  excise  system  to  be  convinced,  that  in 
these  two  points  there  was  a  wide  disparity  between  English 
and  American  methods. 

The  English  excises  were  first  laid  upon  the  venders  of  beer, 
ale,cidcr  and  perry — spirits  were  not  then  (1643)  generally  used — 
and  in  all  probability  they  would  not  have  caused  much  discon- 
tent, if  they  had  been  confined  to  these  articles,  at  moderate  rates. 
But  that  was  not  the  case.  Already  at  the  beginning  of  the  last 
century  we  find  as  to  the  single  article  of  fermented  liquor  a  triple 
tax,  each  at  a  very  high  rate,  viz :  an  excise  on  malt,  an  excise 
on  hops,  and  an  excise  on  malt  liquors ;  and  the  latter  tax  was 
all  the  more  obnoxious  as  it  was  levied  upon  the  heer  hrewed 
hyprivate  families  for  their  oiun  use,  thus  exposing  the  private 
dwelling  of  nearly  every  well-to-do  English  citizen  to  that  vexa- 
tious scrutiny,  which  Blackstone  condemned  and  which  Hamil- 
ton successfully  avoided.  JSIo  wonder,  under  such  circumstances, 
that  the  very  name  of  excises  became  obnoxious  in  England ! 
Such  excessive  taxation  could  not  but  destroy  any  industry  upon 
which  it  was  imposed,  while  a  moderate  tax  could  in  no  manner 
have  injured  it.  In  fact,  in  our  time  and  country  the  same  indus- 
try has  been  seen  to  attain  an  almost  marvelous  growth  under  the 
operation  of  a  moderate  excise,  aided  by  high  taxes  on  spirits. 
In  addition  to  the  exorbitant  rates  of  taxes,  there  was  the 
further  objection  to  English   excises,  that   in  the  course  of 


152  LIQUOK    LAWS    OF   THE    UNITED    STATES. 

time  they  were  extended  to  a  long  list  of  occupations  and 
articles,  and  that  among  the  latter  were  absolute  necessaries 
of  life,  as  meat  for  example.  No  system  hke  this  was  ever 
contemplated  here,  save  in  time  of  war.  An  excise  upon 
spirits  was  all  that  was  proposed  by  those  who  understood  the 
necessity,  morally  and  economically,  of  restricting  the  use  of 
the  article. 

That  it  is  wise  to  refrain  from  the  application  of  internal 
taxation  so  long  as  import  duties  suffice  to  cover  the  necessary 
expenditures  of  government,  can  not  successfully  be  disputed. 
But  when  the  tariff  was  made  to  reach  beyond  the  mere  mat- 
ter of  revenue,  when  it  was  purposely  so  constituted  as  to  in- 
fluence the  energies  of  the  people  and  the  resources  of  the 
country,  so  arranged  as  to  create  and  extend  manufactures,  to 
guide  labor  and  capital  into  new,  and  divert  them  from  old 
channels ;  when,  in  short,  it  was  used  as  a  direct  regulator  of 
one  of  the  three  wealth-producing  agencies — and  all  this  on  the 
ground  that  the  general  welfare,  material  and  political,  exacted 
such  a  course — it  is  difficult  to  see  why  the  same  taxing  power, 
exerted  in  another  form,  could  not  on  the  same  ground  (greatly 
fortified  by  moral  considerations)  be  made  to  restrict  a  given 
manufacture.  At  the  time  under  review  it  was  universally 
thought  that  distilleries  of  grain,  if  kept  within  certain 
bounds,  operated  more  beneficially  upon  trade  balances  than 
any  other  manufacture ;  for  this  reason  it  deserved  to  be  pro- 
tected. When  given  unlimited  scope,  it  proved,  as  Hamilton 
expresses  it,  a  source  of  impoverishment  and  the  cause  of  great 
demoralization ;  and  for  these  reasons  it  should  have  been  re- 
stricted by  internal  taxation.  Protected  against  competition 
from  without,  and  reasonably  restricted  from  within,  it  would 
not  only  have  answered  the  fiscal  and  economic  purposes,  but 
also  the  moral  objects  which  all  agreed  in  desiring  to  see  at- 
tained. 

Although,  fully  in  harmony  with  the  usual  character  of 


CHAPTER   VII.  153 

popular  errors,  the  prejudices  against  excises  in  general  were 
as  tenacious  as  they  could  easily  be  shown  to  be  untenable,  yet 
they  were  evidently  less  strong  against  the  taxing  of  ardent 
spirits  than  against  the  burdening  of  any  other  article,  so  that,  as 
far  as  spirits  were  concerned,  an  exception  from  the  ordinaiy  rule 
of  non-imposition  of  internal  taxes  could  have  been  effected,  with- 
out any  greater  risk  than  that  which  aspiring  politicians  might 
have  feared  from  their  moving  counter  to  a  popular  prejudice, 
which  they  themselves  had  artfully  helped  to  stimulate.  To  claim 
that  such  a  restraint  upon  the  consumption  of  ardent  spirits  would 
have  been  wise  and  beneficial  is  not  saying  anything  against 
the  proper  use  of  intoxicants  ;  indeed,  nothing  could  be  further 
from  the  truth  than  such  an  interpretation.  In  spite  of  ad- 
verse criticism  the  writer  still  adheres  to  the  opinion,  expressed 
on  a  former  occasion,  that  in  some  climes  ardent  spirits  may  be 
a  necessity,  and  that  the  people  using  them  there  may,  in  every 
way,  be  the  better  for  it.  He  holds  to  this  view  just  as  firmly 
as  to  the  opinion,  that  the  moderate  use  of  milder  stim. 
ulants,  with  their  exhilarating,  energy-inspiring  effect  on 
the  brain,  their  tendency  to  render  man  communicative 
and  companionable,  to  loosen  the  tongue  and  quicken 
thought  —  proved   a   blessing    to    many   civilized    nations ;  * 

*  This  opinion  is  expressed  by  the  writer  in  a  statistical  sketch  on 
"  Keal  and  Imaginary  Effects  of  Intemperance."  Many  newspapers,  among 
them  that  most  eminent  representative  of  high-toned  journalism, 
the  Neio  York  Times,  who  generally  approved  of  the  expositions  and 
conclusions  of  the  essay,  unqualifiedly  condemned  the  opinion  in 
question.  Since  then  the  London  Spectator  published  an  article  (Sept. 
24,  1884,)  on  the  "Morality  of  Diet,"  in  which,  much  in  the  spirit  of  the 
authorities  quoted  in  the  above-named  sketch,  some  of  the  fallacies  of  tee- 
totallers are  effectively  exposed.  The  following  pertinent  sentences  are 
taken  from  this  article :  "  As  a  drunken  man  does  immoral  acts,  it  is  natu- 
ral that  a  practice  which,  if  carried  to  excess,  makes  men  drunk,  should  be 
held  in  se  unholy,  and  total  abstinence  be  raised  by  the  exaggeration  char- 
acteristic of  recoil  into  a  moral  obligation.  Nevertheless  the  effect  of  ex- 
cess in  wine  is  no  more  a  reason  against  wine  in  moderation,  than  the  effect 


154  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

that  wine  and  beer  have,  in  fact,  been  eivilizers  of  races. 
It  is  the  excess  against  which  all  arguments  are  directed, 
not  the  proper  use.  Hamilton  has  shown  clearly  enough, 
what  economic  advantages  he  looked  for  from  the  consump- 
tion of  ardent  spirits,  and  we  know  that  the  author  of  the 
"•  Digest  of  Manufactures "  saw  in  distillation  a  safeguard 
against  famines ;  but  it  has  also  been  demonstrated  that  an  ex- 
cess of  distillation  tended  to  impoverishment  and  fairly  in- 
vited the  danger  of  scarcity  of  food.  The  Pennsylvania  law 
of  1779,  entirely  prohibiting  the  distilling  of  grain,  owed  its 
enactment  to  the  apprehension,  that  the  general  custom  of 
transforming  that  article  into  whiskey  would  ultimately  so 
reduce  the  quantity  of  cereals,  available  for  milling  purposes, 
as  to  produce  a  famine. 

There   seemed   all    the   more    reason   for  preventing   an 
excess  of   production   by   internal   taxes,  as  it   was  held   by 


of  gluttony — which,  is  very  demoralizing,  though  our  northern  world  has 
forgotten  the  facts,  and  hardly  understands  the  Biblical  denunciations  of 
the  vice — is  a  reason  against  taking  a  daily  dinner,  and  in  raising  absti- 
nence into  morality  teetotallers  are  conceited.  Wine  is  not  wicked  in  se,  and 
the  theories  they  raise  on  that  basis  are  fallacies  contradicted  by  a  glance 
at  the  facts  of  the  world.  So  far  from  the  use  of  alcohol  destroying  the  races 
that  tise  it,  the  icine-iibbing  races  are  the  conquering  races,  and  civilization 
owes  everything,  not  to  the  Hindoo,  toho  abstains,  like  Sir  Wm.  Lawson,  or  to 
the  Mussulman,  who  abstains  like  a  convict  in  prison,  but  to  the  wine-tast- 
ing Greek,  and  the  hard-drinking  Koman,  and  the  beer-swilling  varieties 
of  the  Teutonic  race.  The  Hebrew  who  drinks,  and  always  has  drunk  from 
Noah  downward,  has  done  five  times  as  much  for  the  world  as  his  cousin 
the  Arab,  who,  even  in  Africa,  is  the  most  rigid  abstainer.  The  single 
Hindoo  sect  which  has  not  renounced  alcohol,  but  demands  regular  rations 
of  rum — the  Sikh — is  the  one  which,  were  we  away  from  India,  would 
conquer  and  probably  reinvigorate  all  the  others.  Nor  is  the  teetotaller's 
dogma  as  to  the  moral  efEect  of  total  abstinence,  especially  in  regard  to  vio- 
lent crime,  one  whit  more  irrefutable.  The  Turks  who  committed  the  atro- 
cities of  Batouk  were  hereditary  total  abstainers  ;  the  authors  of  the  mas- 
sacres of  Cawnpore  had  never  seen  liquor  ;  and  the  Bedouin  who  will  kill 
you  for  your  buttons,  would  kill  you  al.so,  if  he  could,  for  drinking  Bass." 


CHAPTER    VII.  155 

tlie   ablest  financiers  of  the  time,  that  a  more  reliable,  pro- 
ductive, safe  and  legitimate  source  of   revenue   could  not  be 
conceived  than  a  tax  upon  a  consumable  article,  which,  though 
not  a  necessary  of  life,  was  almost  as  common  a  part  of  diet  as 
bread  or  meat,  and  yet  deserved  to  be  classed  as  a  luxury  more 
than  anything  else,  especially  because  its  excessive  consump- 
tion was   usually  accompanied  by  many  social  evils.     In  Ba- 
varia, where  people  would  as  soon  think  of   living  without 
bread   as  without   beer,   excises   on   the   latter  article   have 
always  been   the  most   popular  mode  of  obtaining  revenue ; 
and    great    public   works,  like    the   Heller    Bridge  —  which 
took  its  name  from  the  fact  that  to  pay  for  it  a  tax  of  one 
Tieller  {-^  cent)  was  levied   on  each   gallon  of    beer  —  were 
often    accomplished   exclusively  by   this   means.     Hamilton, 
it  will  be  recollected,   strongly   urged    the    substitution    of 
malt  beverages  for  ardent  liquors,  and  he  shared  the  opinion 
of  the  majority  of  law-makers,  that  malt  liquors  would  answer 
a  great  moral  purpose;  yet  he  distinctly  stated  that,  in  advo- 
cating the  encouragement  and  protection  of  breweries,  he  had 
in  view,  among  other  things,  the  ulterior  object  of  making 
these  manufactories  a  lucrative  source  of  revenue,  to  be  re- 
sorted to  whenever  public  exigencies  required  it.     With  the 
prophetic  eye  of   genius  he  no  doubt  foresaw  what  his  policy 
would  lead  to,  and  contemplated  with  satisfaction  the  favorable 
prospect  offered  to  his  country.     The  experience  of  the  pres- 
ent generation  has  verified   his   hopes  and   predictions,  and 
has  at  the  same  time  furnished  ample  evidence  that,  avoiding 
the  cause  of  the  prejudice  against  excises — a  thing  which  even 
in  Hamilton's  time  had  outlived  its  reality, — the  Government 
would  encounter  no  difficulty  in  levying  and  collecting  internal 
taxes  on  the  commodities  in  question. 

If  it  had  not  been  for  the  ulterior  object  of  protection,  what 
sound  reason  would  there  have  been  in  a  policy  which  taxed  (by 
imposts)  articles  of  absolute  necessity  (as  salt  for  instance),  while 


156  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

it  left  completely  tax-fi'ee  a  quasi  luxury,  the  excessive  indul- 
gence of  which  was  pregnant  with  evil  ?  The  very  article  which 
in  nearly  all  countries  bears  the  heaviest  burden  of  taxation, 
was  here  completely  exempt  from  any  duties,  and  it  is  surely 
an  unwarranted  imputation  to  claim  that  the  American  people 
would  not  soon  have  comprehended  the  inexpediency  of  this 
immunity.  What  was  practicable  in  1862,  and  is  still  a  reality 
in  the  "  piping  times  of  peace,"  of  which  the  year  1885  forms  a 
part,  would  certainly  have  been  feasible  from  1820  to  the  first 
named  year,  had  it  not  been  for  the  singular  interrelation  sub- 
sisting between  a  more  or  less  popular  prejudice  and  party- 
politics  on  the  one  hand,  and  the  protective  idea  on  the  other. 
Against  a  strong  current  of  popular  opinion  a  law  could  not 
have  prevailed ;  but  it  is  a  fact — and  that  is  precisely  what  was 
sought  to  be  demonstrated  —  that  unaided  by  party  considera- 
tions and  the  fiscal  outcome  of  Protection,  popular  opinion, 
though  very  powerful  as  to  internal  taxes  in  general,  would 
not  have  proved  strong  enough  to  forbid  the  levying  of  an 
excise  on  spirits  exclusively.  The  professional  distillers  at  all 
times  cheerfully  submitted  to  the  law.  As  to  the  consumers,  it 
may  safely  be  asserted,  that,  as  they  did  not  find  fault  with  the 
tariff,  which  in  fact  made  them  pay  the  duties  on  foreign 
spirits,  they  would  not  have  grumbled  at  the  slight  increase 
of  price  which  an  excise  on  domestic  spirits  would  have  occa- 
sioned. The  opposition  was  almost  entirely  confined  to  dis- 
tilling farmers ;  but  had  not  their  cause  been  made  a  party 
issue,  they  would  undoubtedly  in  a  very  short  time  have 
learned  that  their  own  interests  demanded  a  moderate  restraint 
upon  distillation,  and,  accordingly,  rather  than  pay  the  tax, 
many  of  them  would  have  discontinued  distilling,  as  great 
numbers  did  during  the  operation  of  the  first  excise  laws.  As 
it  was,  they  were  educated  to  the  belief  that  to  advocate 
unrestricted  country  distilling  was  equivalent  to  displaying  a 
zealous  solicitude  for  the   security  of   individual  rights,  and 


CHAPTER    VII.  •    157 

that  the  political  party  who  did  so  deserved  their  support. 
Under  the  dominion  of  this  political  creed,  country  distillino- 
became  the  fountain-head  of  that  degree  of  intemperance 
which,  during  four  or  five  decades  preceding  the  Southern 
Rebellion,  called  into  existence  a  great  variety  of  associations 
(good  and  bad,  excellent  and  execrable),  striving  for  the  sup- 
pression of  excessive  indulgence. 

Incidentally  it  is  worthy  of  note,  that  the  rural  districts, 
which,  according  to  all  authorities,  were-  then  the  homes  of 
drunkenness,  the  scenes  of  all  the  evils  of  intemperance,  are 
to-day  the  strongholds  of  that  zealous  advocacy  of  total  abstin- 
ence, which  scoffs  at  personal  liberty,  sneers  at  the  rights  of  man, 
contemptuously  scouts  statistical  arguments,  and  out-laughs  all 
claims  based  .on  experience  and  sober  reasoning.  In  this  pas- 
sage from  one  extreme  to  the  other,  one  will  without  difficulty 
recognize  the  characteristics  of  that  reaction  which  invariably 
follows  undue  tension;  in  history  one  finds  its  analogue  in 
many  shapes — in  the  relapse  from  unbridled  licentiousness  to 
Puritan  ascetism ;  from  extreme  ungodliness  to  mysticism  or 
pietism ;  from  the  abject  servility,  that  cringed  before  absurd 
dogmas  and  empty  forms,  to  that  fanatical  love  of  liberty  which 
found  its  end  in  the  sea  of  French  blood,  shed  in  its  name. 
Fortunately,  all  such  reactions  are  of  a  transitory  character, 
passing  away  more  or  less  rapidly,  to  give  room  to  a  normal 
state  of  things,  holding  the  middle-ground  between  the  two 
extremes. 


CHAPTER  VIII. 

THE    ERA     OF     HIGH    PROTECTIVE    TARIFFS. PARTY    DIVISION    ON 

THE    SUBJECT. ATTITUDE    OF    CALHOUN    BEFORE    AND    AFTER 

THE  MISSOURI  COMPROMISE. TARIFF   OF  1824. TEMPERANCE 

POLICY     IN   REGARD     TO    USE    OF    WINE. CONGRESS    GRANTS 

LAND    TO    FRENCH     VINTERS. DUTIES     ON    WINES     REDUCED 

FOR    MORAL    REASONS. PROTECTIONIST     EFFORTS    IN    FAVOR 

OF  WHISKEY. PENNSYLVANIA  FARMERS  ASK  FOR  PROHIBI- 
TION OF  IMPORTATION  OF  SPIRITS. FUTILE  EFFORTS  TO  RE- 
INTRODUCE    AN     EXCISE     ON     SPIRITS. — THE     STRUGGLE     FOR 

THE    PROTECTION    OF    WHISKEY  IN    1828. l^IIXED   STATE   OF 

AFFAIRS  :  "  YANKEE  "  RUM  OSTRACISED  ;  WHISKEY  DE- 
SCRIBED    AS     PALATABLE     AND     FASHIONABLE.  WRANGLE 

OVER     THE     DUTY     ON     MOLASSES. YANKEEDOM     AND     ITS 

ALLEGED     FRAUDS     ARRAIGNED. INTERESTING     DEBATE     ON 

THE  EXPEDIENCY  OF  CREATING  NEW  MARKETS  FOR  WHIS- 
KEY.  TARIFF   OF    1828. INCREASE    OF    IMPOSTS   ON    SPIRITS 

AND   MOLASSES. REVOCATION   OF   UNJUST  CLAUSE  IN  REGARD 

TO    LATTER     ARTICLE    IN     1830. REVISION    OF    DUTIES     ON 

WINES. EXTENSIVE    FRAUDS     UPON     THE    GOVERNMENT     BY 

IMPORTERS     OF    WINES. THE     TARIFF     ACTS     OF     1830     AND 

1832. — NULLIFICATION  OF   TARIFF. CALHOUN  AND  JACKSON. 

COMPROMISE  ACT  OF  1833. REDUCTION  OF  DUTIES. — FI- 
NANCIAL    CRISIS     UNDER     VAN    BUREn's     ADMINISTRATION. 

PRECARIOUS  CONDITION  OF  TREASURY  UNDER  TYLEr's  ADMIN- 
ISTRATION.  ANOTHER  CONFLICT  AND  COMPROMISE. — INCREASE 

OF  DUTIES   BY   TARIFF  ACT    OF    1842. FILLMORE  ON  EXCISES. 

FURTHER     CHANGES    OF    THE    LAWS.— CONCLUSIONS   AS     TO 

SPIRIT   AND    EFFECT   OF   LAWS. 

After  the  abolition  of  the  second  excise  system  the  policy 
pursued  in  relation  to  the  liquor  question  virtually  remained 
unchanged  up  to  1857.  Although  there  were  changes  in  the 
rates  of  import  duties — mostly  of  an  upward  tendency — there 
was  no  deviation  from  the  old  economic  principle.  It  is  for  this 
reason  that  the  laws  enacted  during  the  period  named,  which 


CHAPTER    Vin. 


159 


includes   what  may   be  styled    the   era   of   high    protective 
tariffs,  may  readily  be  reviewed   in  a  single  chapter.     There 
are,  however,  other  reasons  for  this.     From  the  year  1820, 
when  the  Senate  rejected  a  distinctively  protective  tariff,  which 
had  been  adopted  by  the  House  of  Kepresentatives,  the   sec- 
tional feeling  developed  during  the  far-reaching  struggle  over 
the  question  of  admitting  Missouri  into  the  Union,  determined 
to  a  great  extent  not  only  the  agitation  in  favor  of,  and  the 
opposition  to  the  protective  system,  but  also  the  complexion 
of   old   and   the   formation   of   new  political  parties.      The 
changed  condition  of  affairs  is  best  characterized  in  a  concrete 
case,  namely,  the  attitude  of  the  master-mind  of  the  new  op- 
position.    Before  1820  we  find  Calhoun  working  hand  in  hand 
with  Clay,  the  advocate  of  Protection  pure  and  simple.     Al- 
though he  did  not  ignore  the  fact,  that  the  population  of  the 
section  of  country  represented  by  him  had  no  direct  interest 
in  a  protective   tariff,  being  chiefly,  almost   exclusively,  en- 
gaged in  agriculture,  he  nevertheless  held  the  opinion  that 
not  only  the  prosperity,  but  also  the  security  of  the  country 
depended  upon  the  encouragement  and  protection  of  manu- 
factures.    In  his  speech  of  the  4th  of  April,  1816,  siding  with 
Clay  in  advocating  high  duties,  he  said,  that  "  when  our  man- 
ufactures  had  grown  to  a  certain   perfection,  as   soon  they 
would  be  under  the  fostering  care  of  the  Government,  the  farm- 
er would  find  a  ready  market  for  his  surplus  produce,  and  a 
certain  and  cheap  supply  of  all  his  wants."     With  this  object 
in  view,  and  an  eye  to  the  interests  of  his  particular  locality,  he 
especially  commended  cotton  factories  to  the  consideration  of 
Congress.     In  reference  to  the  security  of  the  country  he  held 
the  view,  explained  in  the  first  chapter  of  this  book,  that  in 
order  to  be  able  to  take  care  of  itself,  a  country  must  be  so 
placed  *as  not  to  have  to  depend   upon  another  for  the  means 
of  its  defence. 

After  the    Missouri  Compromise    Calhoun    became    the 


160  LIQUOR   LAWS    OF   THE    UNITED    STATES. 

leader  of  that  determined  opposition  to  the  protective 
system,  which  culminated  in  the  doctrine  of  nullification, 
and  subsequently,  for  a  great  number  of  years,  shaped  the 
course  of  political  events.  The  conflict  now  more  and  more 
assumed  a  sectional  character;  the  doctrine  of  states-rights; 
the  question  of  the  authority  of  the  National  Government  to 
levy  taxes  for  purposes  other  than  revenue,  and  the  question 
of  free  labor  and  slave  labor,  as  affected  by  a  protective  tariff, 
entered  into  the  contest.  Old  Parties  became  disrupted,  and 
new  parties  were  organized.*  In  fact,  from,  this  period  the 
history  of  the  so-called  American  system  is  so  closely  inter- 
linked with  the  history  of  the  Union,  that  it  is  almost  impossi- 
ble to  write  of  the  former,  without  writing  the  whole  of  the 
latter.  Closely  to  follow  the  development  of  the  question 
from  phase  to  phase  would  lead  us  much  further  away  from 
the  subject  under  consideration,  than  the  objects  in  view  would 
under  any  circumstances  justify.  The  present  inquiry  must, 
therefore,  necessarily  be  confined  to  measures  directly  relating 
to  the  liquor  traffic ;  while  everything  else  pertaining  to  the 
tariff  can  only  receive  passing  notice. 

The  tariff  of  1824,  a  protective  measure  in  the  full  sense 
of  the  term,  did  not  affect  distilled  spirits,  the  decidedly  pro- 
tective duties  imposed  upon  this  article  by  the  Act  of  1816 
remaining  unchanged,  and,  excepting  the  claim  of  the  Louisiana 
sugar  planters,  that  their  product  should  be  protected  against 
foreign  competition,  nothing  new  came  to  the  surface  during 
the  discussions  on  any  of  the  bills  offered  from  1816  to  1825. 
The  duties  on  ale,  porter  and  beer  were,  however,  increased 
from  fifteen  to  twenty  cents,  when  imported  in  bottles,  and 
from  ten  to  fifteen  cents,  when  imported  in  casks.  The  duty  on 
black  quart  bottles  was  raised  to  $2  per  gross.     The  reduction 


*  The  origin  of  tlie  Whig  or  National  Republican  and  the  Democratic 
parties  date  back  to  this  period 


CHAPTER    YIII.  161 

of  duties  on  wines,  effected  by  the  Act  of  Mareli  13,  1819,  has 
ah'eady  been  mentioned ;  but  it  remains  to  be  said,  that  this 
redaction   resulted   from  a  desire   to  further   temperance  by 
cheapening  wines  and  thereby  inviting  an  increase  in  their  con- 
sumption.    Domestic  wine-cultnre  progressed  so  slowly,  that 
there  was  no  telling  when  the  domestic  production  would 
cover  any  part  of  the  market  demand.     And  this  very  fact, 
namely,  the  paucity  of  the  domestic  produce,  no  doubt  facili- 
tated the  reduction  of  duties,  for,  in  consequence  of  it,  there 
was  not  enough  of' a  basis  for  an  ox3position  on  the  favorite 
plan  of  local  interests.     It  is  true.  Foot,  from  Connecticut, 
protested  against  a  lowering  of  the  duties,  because,  as  he  as- 
serted, the  first  reduction  after  the  war  had  already  destroyed  a 
growing  industry  in  his  State,  and  because  on  moral  princi- 
ples he  desired  to  see  the  production  of  wines  cherished  in  the 
United  States.     His  protest  availed  nothing,  because  the  same 
moral  consideration  was  also   urged   in  favor  of  a  measure, 
which  tended  to  enable   the  people  to  substitute  cheaj)  wines 
for  ardent  spirits.     That  the   desirabilit}'  of  this  change  was 
generally  admitted,  appears  from  the  enactment  of  a  law,  in 
1817,  authorizing  the  sale  of   four   contiguous  townships  in 
Mississippi  to  emigrants  from  France,  on  the  express  condition 
that  these  French  purchasers,  who  had  associated  together  to 
form  cis- Atlantic  settlements,  cultivate  grape-vine  and  olives. 
During  the  period  from  182-1  to  1828,  the  advocates  of 
protection  worked  incessantly  for  extending  and  perfecting 
their  system,  and  among  the  many  objects  of  domestic  manu- 
factures recommended  by  them  for  additional  protection  against 
foreign   competition,  distilled   spirits    occupied    a   prominent 
place.     The  incentive  to  this  effort  again  emanated  from  rural 
districts.     Pennsylvania  farmers   memorialized    Congress   on 
the  subject,  praying  that  the  importation  of  spirits  be  prohib- 
ited, or  the  duties  thereon  so  increased,  as  to  amount  to  a  pro- 
hibition.    The   Senate   Committee   on  Agriculture,  of  which 


162  LIQUOR   LAWS   OF   THE   TJNrrED    STATES. 

Findlay  was  at   that   time  chairman,  on  the  21st   of  March, 
1826,  rendered  an  exhanstive  report  on  the  subject,  in  which 
the  opinion  is  expressed  that  a  prohibition  in  fact,  if  not  in 
express  terms,  ought  to   be   effected,  as  it  would  be  "  highly 
beneficial  to  a  very  numerous  class  ol  citizens,  whose  pursuits 
have  claims  to  the  fostering  care  of  the  Government."     Aware 
that  a  bill  of  this  kind  could  not  originate  in  the  Senate,  the 
Committee   merely  suggested   that    the  revenue    deficiency, 
which  a  prohibitory  import  duty  on  foreign  spirits  would  have 
occasioned,  might  be   made   up  by  an  internal  tax  on  the  do- 
mestic article.     Whether  the  Pennsylvania  petitioners  would 
have  been  very  eager  to  accept  the  fulfillment  of  their  prayer 
on  this  condition,  that  is  to  say,  at  the  cost  of  the  detested  ex- 
cise system,  seems  questionable ;  but  there  can  be  no  doubt 
that  had  an  appreciation  of  the  principle  which  underlies  the 
senatorial   suggestion  been   generally  diffused,  the  people  at 
large  would  soon  have  perceived  not  only  the  justice  of  it  in 
such  a  case,  but  also  its  applicability  under  the  circumstances 
which  form  the  subject  of  the  preceding  chapter.     Unfortu- 
nately, the  matter  was   never  placed   before  the  people  in  a 
proper  light;  the  touch-it-not  policy  being  still  very  powerful. 
Another  futile  attempt  to  re-introduce  the  excise  system  was 
made  in   the  same  year,  the  avowed   object   being  to  raise 
money  for  internal  improvements  and  public  education.     This 
attempt — induced  by  pertinent  memorials  and  petitions — was 
in  the  form  of  a  resolution,  setting  forth  that  "  it  was  expedi- 
ent to  increase  the  duty  on  all  imported  spirits,  and  to  levy  an 
excise  on  domestic  liquors."     A  select  committee  of  the  House, 
to  whom  this  resolution  was  referred,  refrained  from  making 
any  definite  recommendations,  on  the  ground  that  the  infor- 
mation, which  could  be  obtained  from  the  Treasury  Depart- 
partment  as  to  the  working  of  previous  excises,  was  not  sufii- 
cient  to  warrant  any  final   conclusions.     As  an  expression  of 
sentiment  and  opinion,  however,  the  report  is  of  great  value. 


CHAPTER  vni.  1G3 

"No  fairer  subject  of  taxation  and  revenue,''  the  report  reads, 
"can  be  presented  to  the  Government  than  ardent  spirits, 
whether  foreign  or  domestic,  and  the  committee  would  desire 
to  see  a  larger  portion  of  our  revenues  derived  from  this 
source,  and  that  some  of  the  immediate  articles  of  prime  ne- 
cessity to  the  comfort  of  the  poor  and  of  the  middle  classes  of 
society  might  be  free  of  duty.  Foreign  liquors  are  used  to  a 
considerable  extent  as  articles  of  luxury.  Domestic  liquors 
are  made  from  various  materials,  and  in  every  section  of  the 
country.  They  are  used  to  an  extent  which  many  believe  to 
be  incompatible  with  the  public  good,  and  perhaps  the  con- 
sumption is  increasing  beyond  the  ratio  of  population.  The 
consequences  are  deeply  felt,  and  are  greatly  deplored  by 
every  friend  of  man.  TJie  question  is  not  whether^  hy  sump- 
tuary  laios,  we  vnll  'prohibit  intoxication  '  hut  whether  intox- 
icating liquor  is  a  fair  and  laiaful  object  of  taxation^  from 
which  the  Government  may  draw  its  revenues  to  pay  the  pub- 
lic debt,  to  distribute  widely  the  blessings  of  free  schools,  and 
improve  the  internal  condition  of  our  country.  And  if  by  the 
imposition  of  such  tax,  the  consumption  of  ardent  spirits  is 
diminished,  will  not  the  public  morals,  the  comfort  and  happi- 
ness of  the  community,  the  wealth  and  the  character  of  the 
nation  be  advanced  ?  "  Here  we  have  the  essence  of  the  ar- 
guments used  by  Hamilton,  a  re-enunciation  of  that  principle, 
which,  when  put  to  the  touch-stone  of  experience,  demonstrated 
the  easy  possibility  of  serving  the  interests  of  domestic  hus- 
bandry, of  satisfying  the  fiscal  requirements  of  the  Government, 
and  at  the  same  time  advancing  true  temperance  in  the  only 
way  compatible  with  the  spirit  of  our  institutions  and  the 
welfare  of  the  country.  But  precious  as  were  these  words, 
they  were  wasted,  like  words  hastily  traced  on  the  tide- 
washed  sands  of  the  seashore,  and  as  hastily  effaced  by  the 
in-rolling  waves — the  waves  of  selfishness  of  American  agri- 
culturists. 


164  LIQUOR    LAWS    OF   THE   UNITED   STATES. 

While  no  attention  was  paid  to  such  rational  suggestions 
as  we  have  just  quoted,  the  demand  for  increased  protection 
grew  stronger  from  day  to  day,  and  with  its  growth  the  geo- 
graphical line  of  division  between  Protectionist  and  Free 
Trader  became  more  and  more  marked,  although  Massa- 
chusetts, Maine  and  New  Hampshire  in  many  respects  stood, 
as  yet,  on  the  same  ground  occupied  by  the  Southern  States. 
When  in  1828,  under  the  administration  of  John  Quincy 
Adams,  another  change  of  the  tariff,  favoring  protection,  was 
proposed  in  Congress,  the  discussions  frequently  disclosed  the 
development  of  the  idea,  that  in  the  struggle  for  still  higher 
duties  the  interests  of  the  Southern  States  were  to  be  sacriliced 
to  the  advantage  of  the  N^orthern  and  Eastern  States.  In  respect 
to  ardent  liquors,  however,  the  state  of  things  was  slightly 
mixed.  While  the  proposed  increase  of  duties  on  these  articles 
themselves  did  not  encounter  much  opposition,  the  proposition 
to  double  the  impost  on  molasses,  then  taxed  at  five  cents  per 
gallon,  furnished  material  for  a  series  of  extremely  ludicrous 
altercations.  The  wishes  of  the  sugar  planters  of  Louisiana 
clashed  with  the  interests  of  the  distillers  of  New  England 
rum ;  but  the  fisheries  and  navigation  of  the  East,  which  as 
has  been  shown  before,  depended  in  part  upon  the  latter 
manufacture,  were  supposed  to  be  arrayed  not  only  against  the 
agricultural  interests  of  Louisiana,  but  also  against  those  of 
the  grain-growing  States ;  and  it  is  this  view  which  occasioned 
some  very  entertaining  bits  of  parliamentary  fencing.  The 
House  Committee  on  Manufacture,  whose  report  formed  the 
basis  of  argument,  had  broken  a  lance  in  favor  of  whiskey, 
claiming  that  the  liquor  distilled  from  grain  had  become  very 
"palatable  and  fashionable,"  and  deserved  to  be  given  prefer- 
ence over  New  England  rum,  because  it  created  a  demand  for 
domestic  cereals  and  thereby  benefited  domestic  agriculture. 
On  the  correct  supposition  that  abundant  grain  would  be  pro- 
duced in  the  Union  to  furnish  a  full  supply  of  ardent  spirits, 


CHAPTER    VIII.  165 

if  the  demand  was  not  otherwise  supplied,  the  committee  re- 
D-arded  the  distillation  of  rum  as  an  undue  interference  with 
the  interests  of  domestic  grain-growers,  and  for  this  reason 
recommended  higher  duties  both  on  foreign  spirits  and  on 
molasses.  This  was  but  a  variation  on  an  old  tune ;  but  the 
times  had  changed,  the  scenes  were  slightly  shifted,  the  roles 
partly  exchanged.  The  very  State,  which  in  1791  was  repre- 
sented as  consuming  ten  times  as  much  liquor  as  Connecticut, 
and  as  considering  the  article  a  necessary  of  life — North  Caro- 
lina— now  entered  the  lists  in  behalf  of  temperance.  One  of 
her  representatives  in  Congress,  Bryan,  took  up  the  cause  in 
these  words : 

"  It  seems,  then,  sir,  that  we  are  iu  the  first  place  to  create,  by  legisla- 
tion, a  demand  for  whiskey,  and,  by  excluding  foreign  spirits  and  molasses, 
to  compel  its  use.  Such  a  proposition  seems  to  me  monstrous,  both  in  a 
political  and  moral  view.  The  materials  and  industry  of  numerous  classes 
of  our  citizens,  by  the  operation  of  the  West  India  trade,  are  exchanged  for 
many  millions  of  gallons  of  molasses,  which  is  largely  used  as  an  article  of 
diet  by  all  classes,  and  especially  by  the  poor,  and  is  undoubtedly  very  nu- 
tritious ;  besides,  it  yields  a  large  revenue  to  the  Government.  I  would 
ask,  sir,  why  the  fruits  of  their  industry  and  capital  is  less  worthy  of  pro- 
tection because  it  appears  in  the  shape  of  molasses,  than  if  it  appeared  in 
the  more '  fashionable  '  garb  of  whiskey?  It  is  also  a  strong  recommenda- 
tion to  molasses  that  it  can  be  taxed  by  an  impost  duty  ;  whiskey  can  only  be 
taxed  by  an  excise,  and  that,  it  seems,  is  a  hazardous  experiment.  So  far 
from  this  Government  attempting  to  create  a  demand  for  whiskey,  I  had 
hoped  that  the  proposition  from  the  Committee  on  Commerce  *  to  reduce 
the  duty  on  wines,  would  have  met  favorable  reception  ;  it  is  strongly  re- 
commended by  its  tendency  to  substitute  the  use  of  pure  and  wholesome 
liquors  for  that  of  obnoxious  ardent  spirits,  thus  promoting  eminently  the 
moral  and  physical  health  of  the  nation."  f 


*  Am.  State  Paper,  Finance,  Vol.  V.,  page  775. 

•f-  On  this  occasion  Bryan  also  vindicated  his  constituents'  taste,  by 
jocosely  protesting  against  the  assertion  that  whiskey  had  become 
fashionable  and  palatable.  His  constituents,  he  said,  had  not  yet 
become  so  fashionable  as  to  discard  Madeira  (when  they  could  get  it)  for 
whiskey 


166  LIQUOR   LAWS    OF  THE    UNITED   STATES. 

Although  evidently  not  meant  to  be  such,  this  speech  was 
virtually  one  in  favor  of  the  rum  distilleries  of  the  New  Eng- 
land States,  and  on  that  account  could  not  fail  to  bring  upon 
Brvan  the  blame  of  his  Southern  colleagues.  Carson,  also 
from  North  Carolina,  who  abhorred  the  entire  American  sys- 
tem, thought  that  the  duty  on  molasses  should  be  as  high  as 
possible  for  the  reason,  among  others,  that  "  it  is  the  material 
from  which  is  distilled  a  noxious  spirit  commonly  called  in 
North  Carolina  Yankee  rumy  He  asserted  that  this  "  poison- 
ous stuff  "  had  inundated  the  seaboard  of  his  State  and  found 
its  way  into  as  many  parts  of  the  interior  as  the  wooden  clocks 
and  wooden  nutmegs  of  the  same  origin.  The  conclusion  of 
his  harangue  is  too  precious  a  bit  of  oratory  to  be  omitted. 
Here  it  is : 

"  My  colleague  (Bryan)  has  asked,  wh ether  we  should  sit  here  legis- 
lating for  the  protection  of  a  noxious  liquor,  which  tends  to  degradation, 
meaning  whiskey.  Now,  Mr.  Chairman,  I  appeal  to  the  candid  decision  of 
my  colleague,  which  is  the  most  noxious,  poisonous,  and  degrading  in  its  na- 
ture, good  rye  whiskey  or  mean  Yankee  rum  ?  I  will  not  do  my  colleague 
the  injustice  to  say,  sir,  that  he  is  in  favor  of  the  American  system  ;  but  if 
he  should  be,  what  is  there  that  demands,  in  a  more  eminent  degree,  his 
protecting  care  than  the  health  of  his  constituents  ?  Nothing,  sir.  And  to 
that  end  I  call  upon  him,  in  sober  earnestness,  to  banish  Yankee  rum  and 
to  substitute  good  whiskey. " 

This  opinion  should  not  be  construed  as  having  been 
uttered  in  a  sense  of  jocular  exaggeration,  for  in  the  Senate  it 
was  given  expression  by  no  less  a  personage  than  Benton,  who 
claimed  "  that  whiskey  was  the  healthiest  liquor  that  was 
drunk,  as  men  were  known  who  had  been  drunk  upon  it  for 
forty  or  fifty  years,  while  rum  finished  its  victims  in  eight  or 
ten " — an  averment  in  which  Chandler,  from  Maine,  in- 
spired, it  would  seem,  by  that  Christian  charity  which  to  this 
day  holds  sway  in  his  State,  welcomed  as  an  additional  reason 
for  voting  against  the  duty,  confessing  himself  in  favor  of  that 
liquor,  which  would  soonest  dispatch  the  drunkard. 


CHAPTEK   VIII.  167 

A  noteworthy  argument  in  favor  of  doubling  the  duty  on 
molasses  was,  that  the  material  served  as  a  medium  of  fraud 
upon  the  Government,  inasmuch  as  by  mixing  four  gallons  of 
whiskey  with  one  gallon  of  molasses,  and  thus  producing  five 
gallons  of  New  England  rum,  the  exporter  of  that  article, 
paying  five  cents  duty  on  his  molasses,  and  receiving  twenty 
cents  drawback  on  his  rum,  made  a  clear  gain  of  fifteen  cents 
on  the  five  gallons.  The  inferential  evidence  adduced  to  sub- 
stantiate this  charge  was  not  very  strong,  yet  the  argument 
was  eagerly  seized  upon  as  being  in  harmony  with  the  inten- 
tions of  the  majority  of  the  law-makers.  These  intentions,  it 
has  been  seen,  appealed  to  the  selfishness  of  the  grain-growers 
and  of  the  sugar-planters,  while  they  militated  disastrously 
against  the  New  England  distillers.  The  current  of  opinion 
in  favor  of  increasing  the  duty  on  molasses  from  five  to  ten 
cents  proved  too  strong  for  any  available  resistance,  but  it  is 
difficult  to  determine  which  one  of  the  factors  forming  this 
opinion  predominated :  whether  the  irrepressible  demands  of 
the  grain-growers,  or  the  claims  of  the  sugar-planters,  or  the 
Bentonian  view  of  the  superiority  of  whiskey  over  rum  gen- 
erally, or  the  abhorrence,  tinged  with  sectionalism,  of  Yankee 
rum  in  particular,  or  the  fear  of  fraud  upon  the  Government, 
or  the  general  tendency  of  the  time,  to  promiscuously  tax 
everything  and  all  things  coming  from  abroad,  or,  finally,  the 
disposition,  said  to  have  prevailed,  to  insure  the  defeat  of  the 
whole  bill  by  making  it  totally  inequitable.  But  whichever 
may  have  had  a  preponderance,  they  all — excepting  the  last 
factor — diverged  toward  one  point,  which  was,  that  whatever 
tended  to  augment  the  production  of  ardent  spirits  from 
domestic  materials,  tended  also  to  enhance  the  importance  and 
advantage  of  domestic  agriculture,  and,  therefore,  must  needs 
be  advocated  by  every  lover  of  his  country.  Wright  (New 
York)  *  put  it  in  this  way :     "  All  the  whiskey  the  country 

*  Benton's  Debates  of  Congress,  Vol.  X.,  p.  90. 


168  LIQUOR    LAWS    OF   THE   UNITED   STATES. 

can  make  and  market,  furnishes  a  market  for  just  so  mucli 
of  the  grain  of  our  farmers,  which  now  will  not  sell,  and 
must  remain  upon  their  hands."  In  all  the  discussions  upon 
this  subject  but  two  allusions  were  made  to  excises ;  namely, 
the  one  already  quoted  characterizing  the  system,  as  a  haz- 
ardous experiment;  the  other  (by  Condict,  of  New  Jersey), 
favoring  an  excise  on  domestic  spirits  as  a  perfectly  proper 
tax.  No  further  notice  was  taken  of  this  important  side 
of  the  question.  The  protective  idea  ultimately  triumphed 
in  the  case  of  molasses  and  foreign  spirits,  as  it  did  in 
every  other  instance  of  this  historically  important  struggle 
— a  struggle  in  which  all  the  objections  to  the  conversion  of 
the  taxing  power  into  a  protective  lever  were  most  forcibly 
urged  upon  the  consideration  of  the  majority. 

By  the  law  which  was  now  enacted,*  the  duty  on  molasses 
was  fixed  at  ten  cents  per  gallon,  and,  as  if  to  aggravate  the  hard- 
ship imposed  upon  the  New  England  distillers,  no  drawback 
was  allowed  on  the  exportation  of  spirits  manufactured  from 
molasses,  the  ostensible  reason  for  this  being  the  charges  of 
fraud  brought  against  the  exporters  of  that  article.  The  real 
reason  may  have  been,  as  was  said,  an  intention  of  killing  the 
whole  bill  through  the  injustice  of  this  clause.  The  duties  on 
all  foreign  spirits  were  increased  by  fifteen  cents  on  each  gal- 
lon, raising  the  aggregate  amount  of  duties,  in  each  case,  to 
the  following  figures : 

From  grain,  1st  proof,  57  cents  per  gallon. 
2d       "      60      "       " 
3d      "      63      "       " 
4tli     "      67      " 
5th     "      75      "       " 
"         ' '        above  5th  proof,  90  cents  per  gallon. 
From  material  other  than  grain,  1st  and  2d  proofs,  53  cents  per  gallon. 

3d  "        57      "       "         " 

4th  "       63      ' 

5th  "        72       "      " 

"  "  "        "        "        above  5th  proof,  85  cents  per  gallon. 


*May  19,  1828.     Statutes  at  Large,  Vol.  IV.,  p.  270. 


CHAPTER  vm.  169 

The  duty  on  molasses,  amounting  to  over  one  hundred  per 
cent,  of  the  vahie,  was  said  to  have  been  insisted  upon  by  the 
opponents  of  the  protective  system  for  tlie  purpose  of  defeat- 
ing the  entire  bilL  Adverting  to  this  circumstance,  Ingersoll, 
in  the  first  session  of  the  twenty-second  Congress  (1830), 
moved  to  reduce  this  duty  by  one  half,  and  to  allow  a  draw- 
back of  four  cents  upon  every  gallon  of  rum  exported  from 
the  United  States — a  proposition  which  was  at  once  acted 
upon.* 

In  accordance  with  the  report  of  the  House  Committee  on 
Commerce  a  revision  of  the  duties  on  wines  was  effected  during 
the  same  session.  The  rates  existing  at  the  time — being  15 
cents  on  wines  not  enumerated  f  and  varying  from  $1.00  to  40 
cents  per  gallon  on  wines  specified  by  the  names  of  the  places 
from  which  they  were  exported — were  a  standing  temptation 
to  dealers  in  those  articles  to  first  import  costly  wines  to  ports 
or  places  not  enumerated  in  the  American  tarifi*,  and  thence 
import  them  into  the  Union,  in  which  case  the  articles  were 
treated  as  belonging  to  the  category  of  "  other  wines,"  and 
admitted  at  the  lowest  rate  of  impost.  Thus,  for  example, 
Sherry  shipped  to  the  United  States  from  Cadiz  would  have 
to  pay  sixty  cents  per  gallon,  but  transported  to  Gibraltar  or 
Marseilles,  and  thence  shipped  to  this  country,  it  had  to  pay 
but  fifteen  cents,  if  imported  in  casks ;  thirty  cents,  if  imported 
in  bottles  or  cases.  Wines  of  Sicily,  taxed  at  fifty  cents,  had 
but  to  be  carried  to  some  Mediterranean  port  outside  of  the 
Italian  territories  named  in  the  tariff,  in  order  to  be  admitted 
into  the  Union  at  the  rate  of  fifteen  cents  per  gallon.  With 
the  shrewdness  characteristic  of  the  votaries  of  Mercury,  the 
traders  had  spied  out  the  weak  points  of  our  tariff,  and  utilized 
them  for  a  perfect  system  of  evasions,  alike  easy  of  execution 

*  Statutes  at  Large,  Vol.  IV.,  p.  419. 
f  Fifteen  cents,  when  imported  in  casks ;  thirty  cents,  when  imported  in 
bottles  or  cases. 


170  LIQUOR    LAWS   OF    THE    UNITED    STATES. 

and  exempt  from  any  and  all  risks.  JSTo  doubts  seemed  to 
exist  as  to  the  extent  of  this  practice ;  the  importation  of  wines 
of  the  better  qiialitj,  or  rather  the  importation  of  wines 
consigned  under  the  names  of  the  more  valuable  articles 
decreased  rapidly,  whereas  the  importation  of  the  bever- 
ages classed  as  "  other  wines "  increased  in  a  corresponding 
ratio.  The  consequences  were  the  almost  entire  destruc- 
tion of  oar  commerce  with  the  Western  Islands,  the  Canaries, 
Portugal  and  the  Atlantic  Provinces  of  Spain,  and  a  transfer 
of  trade  to  Mediterranean  ports.  With  the  former  countries 
our  trade  was  supposed  to  be  more  profitable,  by  reason  of  an 
exchange  of  goods,  than  with  the  latter.  It  was  thought  that 
by  the  lowering  of  the  higher  duties  on  finer  wines,  and  a  change 
in  the  classification  of  all,  the  evils  could  be  remedied,  and,  ac- 
cordingly, a  law  was  passed  *  fixing  the  duty  on  wines  of  France, 
Germany,  Spain  and  the  Mediterranean  ports,  unless  specially 
enumerated,  at  fifteen  cents  per  gallon  ;  except  red  wines  of 
France  and  Spain,  when  not  imported  in  bottles,  which  were 
taxed  only  ten  cents ;  on  wines  of  all  countries,  when  imported 
in  bottles  and  cases,  unless  specified  by  name,  on  wines  of 
Sicily,  and  on  all  wines  not  enumerated,  in  whatever  manner 
imported,  thirty  cents,  with  the  addition  of  the  duty  on  the  bot- 
tles, if  so  imported ;  on  Sherry  and  Madeira  fifty  cents  per 
gallon,  in  addition  to  duty  on  bottles.  This  law  had  no 
political  or  parliamentary  connection  with  the  high  protective 
tariff  adopted  a  few  days  before.  It  stood  isolated  as  a  subject 
of  legislation  in  no  way  allied  to  the  great  economic  question, 
which  again,  and  now  more  markedly  than  in  1824,  divided 
Congress  into  two  great  groups,  each  held  together  by  a  com- 
mon bond  of  local  interests,  and  a  feeling  of  sectionalism. 

Already  in  1824  South   Carolina   had  taken  the  lead  in 
endeavoring   to   bring   about    concerted    action    against   the 


f  May  24, 1828,  Statutes  at  Large,  Vol.  IV.  p.  309. 


CHAPTER   Vin.  171 

tariff,  even  to  the  extreme  of  open  defiance  of  the  authority 
of  thb  National  Government ;  I)ut  the  agitation  had  not  yet 
become  uniformly  sectional.  All  the  so-called  plantation 
States  were,  it  is  true,  against  protection,  and  from  the  debates 
in  Congress  the  fact  stands  forth  clearly,  that  to  the  minds  of 
some  of  the  leaders,  nothing  seemed  more  feasible  than  to 
make  the  Southern  people  believe,  that  the  East  and  North 
were  profiting  by  the  tariff  at  the  expense  of  the  South.  But 
the  lines  were  not  yet  rigidly  drawn.  Some  New  England 
States  protested  against  indiscriminate  protection  quite  as 
loudly  as  the  South,  and  "Webster,  surely  one  of  the  most  emi- 
nent representatives  of  the  Ibrmer  states-group,  still  o])posed 
protection.  With  the  passage  of  the  tariff  law  of  1828,  and 
the  discussions  which  preceded  it,  the  idea  of  nullifying  the 
tariff  seems  to  have  attained  full  maturity,  and  from  this  time 
on  the  sectional  character  of  the  strife  was  sharply  defined. 
The  South  now  "  stood  together  in  a  solid  phalanx,"  as  Kan- 
dolph  expressed  himself,  and  the  New  England  States  placed 
their  faith  upon  protection,  which,  according  to  Webster,  they 
now  looked  upon  as  the  permanent  policy  of  the  Government, 
and  hence  adjusted  their  industrial  affairs  accordingly. 

It  would  be  going  beyond  the  limits  v/hich  the  subject 
of  this  work  necessarily  fixes  to  historical  digression,  to 
relate  how  the  beginning  of  Jackson's  administration  (1829- 
1837)  ushered  in  the  great  struggle  between  Calhoun  and  "  Old 
Hickory."  It  forms  one  of  the  most  thrilling  events  of  our 
history — this  memorable  contest,  which,  after  the  adoption,  by 
South  Carolina,  of  the  Nullification-Ordinance  of  November 
2'4th,  1832;  after  Jackson's  proclamation  to  the  effect  that  the 
"  Union  must  and  shall  be  preserved ;"  after  all  the  perilous 
moves  and  counter-moves  for  and  against  the  doctrine  of  state- 
rights — finally  terminated  in  the  famous  Compromise  Act  of 
March  2nd,  1833.  There  is  all  the  less  reason  for  such  a  di- 
gression as,  in  all  the  protracted  debates  on  the  questions  lead- 


172  LIQUOR    LAWS    OF    THE    UKITED    STATES. 

ing  up  to  the  compromise,  no  allusion  was  made  on  either  side 
that  would  shed  additional  light  on  the  status  of  the  liquor 
traffic.  The  tariff  acts  of  May  20th  and  29th,  1830,  and  July 
13th  and  14th,  1832,  which  preceded  the  compromise,  did  not 
affect  either  distilled  spirits  or  fermented  liquors,  wines  excepted. 
In  the  midst  of  the  general  upward  movement  of  the  tariff  the 
duties  on  the  latter  articles  were  again  lowered — actually  and 
prospectively.  By  the  act  of  July  11th,  1832,  the  red  wines  of 
France  were  taxed  at  6  cents  per  gallon,  in  casks  ;  white  wines, 
in  casks,  ten  cents  per  gallon ;  French  wines  of  all  sorts,  in 
bottles,  twenty-two  cents.  From  and  after  March,  1831,  all 
wines  whether  of  France  or  other  countries  were  to  pay  half 
the  rates  existing  at  that  time. 

Under  the  operation  of  the  Compromise  Act  of  1833,  the 
maximum  rate  of  duties  from  and  after  the  31st  of  December^ 
1812,  was  fixed  at  20  per  cent,  on  the  value  of  the  article 
taxed ;  and  the  amounts  of  duties  in  excess  of  that  rate  were 
gradually  reduced  in  such  manner,  that  one-tenth  of  this  excess 
was  deducted  in  1833,  another  tenth  in  1835,  1837  and  1839, 
respectively  :  and  one-half  of  the  residue  in  1811,  the  other  half 
in  1812.  After  the  latter  year  ail  imposts  were  to  be  collected 
in  ready  money.  The  period  of  these  biennial  reductions  of 
the  tariff,  embraces  two  of  the  most  critical  epochs  in  the 
financial  history  of  the  Union.  Under  Yan  Buren's  administra- 
tion (1837-1811)  occurred  two  financial  crises,  which  brought 
the  country  to  the  verge  of  ruin,  and  left  many  States  abso- 
lutely bankrupt.  Harrison,  on  assuming  the  presidential  chair 
in  1811,  found  the  country  and  the  treasury  in  a  deplorable 
condition.  During  the  first  year  of  Tyler's  administration 
(1841-45)  the  revenues  fell  below  the  expenses  of  the  Govern- 
ment, while  the  debt  of  the  Union  rapidly  increased;  yet, 
under  the  operation  of  the  Compromise  Act,  a  still  further  re- 
duction of  the  income  had  to  be  effected.  By  another  com- 
promise m  a  different  direction,  consummated  towards  the  close 


CHAPTER    VIII.  173 

of  the  year  1841,  the  omission  of  this  last  reduction  of  revenue 
had  been  rendered  next  to  impossible,  without  a  renewal  of  the 
parliamentary  combats  of  1832-33.  This  bargain  was  conclu- 
ded between  the  friends  of  the  so-called  Distribution  Act  and 
the  friends  of  the  Bankrupt  Act.  The  former  law  provided 
for  the  distribution  of  the  proceeds  from  tlie  sale  of  public 
lands  to  the  States,  making  the  continuation  of  such  distribu- 
tion conditional  upon  the  reduction  of  the  tariff  in  accordance 
with  the  law  of  1833,  inasmuch  as  it  prescribed  that  the  distri- 
bution of  the  land  money  should  cease,  whenever  the  duties  on 
imports  exceeded  twenty  per  cent,  on  the  value  of  the  taxed 
article. 

Out  of  this  state  of  affairs  grew  the  historic  conflict 
between  Tyler  and  Congress,  the  former  having  vetoed  a  bill 
providing  for  a  provisional  tariff,  which  exceeded  the  rates  pre- 
determined by  the  Compromise  Act,  and  disregarded  the  above- 
cited  provisions  of  the  Distribution  Act.  Neither  this  nor  the 
subsequent  controversy  over  the  general  tariff  of  August  30th, 
1842,  which  signalizes  a  return  to  the  first  love  of  Protection- 
ists, added  anything  new  to  the  liquor  question ;  in  fact,  the 
increased  complications  in  which  the  subject  of  Protection  be- 
came entangled,  scarcely  permitted  an  exhaustive  consideration 
of  the  details  of  the  tariff.  The  strife  turned  on  a  question  of 
principle;  this  being  decided,  it  seemed  to  matter  little  how  and 
to  what  extent  it  was  acted  upon.  The  only  noteworthy  circum- 
stance is  the  fact,  that  from  the  inquiries  into  sources  of  revenue 
to  which  the  Government  might  safely  resort,  that  of  an  excise 
on  spirits  was  from  the  beginning  excluded,  and  again  for  no 
other  reason  than  the  odium  which  a  preconceived  notion 
attached  to  the  name  of  the  thing.  How  very  prone  even 
superior  politicians  were  to  pay  tribute  to  this  antiquated 
prejudice,  appears  from  the  following  extract  from  a  speech  by 
Fillmore,  of  New  York : 

"  The  very  name  of  excise  is  odious  in  Great  Britain,  where 


174  LIQUOR   LAWS   OF  THE   UNITED    STATES. 

it  is  practised  ;  and  though  we  find  in  the  Constitution  a  power 
to  raise  revenue  by  excise,  I  am  surprised  to  find  that  the  word 
has  not  been  used  in  this  country.  Aud  why  is  it  so  ?  A  duty 
in  the  shape  of  an  excise  was  recommended  during  the  two 
first  years  of  our  Government,  but  the  name  was  so  odious  that 
the  Administration  that  ventured  to  impose  the  duty,  did  not 
venture  to  use  the  name.  I  find  a  report  by  Mr.  Hamilton,  in 
which  instead  of  excise,  he  called  it  internal  revenue.  There  is 
a  great  deal  in  changing  a  name." 

The  opinion  that  the  imposing  of  excises  would  be  a  dangerous 
experiment  seems  to  have  still  prevailed  to  a  very  great  extent, 
and  it  was  naturally  again  strengthened  by  the  efforts  for  a  pro- 
tective tariff.  It  was  contented  that  the  Government  needed 
so  much  money,  that  a  tariff  for  revenue  only  would  practically 
operate  as  a  protective  tariff,  and  this  was  the  sign  under 
which  the  friends  of  Protection  again  conquered. 

The  new  duties  imposed  on  ardent  spirits  by  the  act  of 
1842,  were  as  follows : 

On  brandy,  one  dollar  per  gallon  ;  on  spirits  manufactured 
from  grain  and  other  materials,  and 

Of  the  first  and  second  proof,  sixty  cents  per  gallon. 
"     "   third  proof,  sixty-five  cents  per  gallon. 

"     "   fourth   "  seventy  cents  per  gallon. 

"    "   fifth       "  seventy-five  cents  per  gallon. 

Above   "  "  ninety  cents  per  gallon. 

The  duties  on  ale,  beer  and  porter  remained  as  before, 
namely,  twenty  cents  per  gallon,  when  imported  in  bottles, 
and  fifteen  cents,  when  imported  in  casks.  Madeira,  Sherry, 
San  Lucar  and  Canary  wines  were  taxed  at  sixty  cents  per 
gallon;  Champagne,  forty  cents.  Port,  Burgundy,  and  all  clarets, 
in  bottles,  thirty-five  cents ;  the  wines  of  France,  Austria,  Prus- 
sia, Sardinia  and  Portugal,  not  enumerated,  twenty  cents  per 
gallon,  when  imported  in  bottles ;  and  red  wines  in  casks,  six 
cents  per  gallon.     Molasses  was  taxed  at  4|  mills  per  pound  ; 


CHAPTEK    VIII.  175 

black  quart  bottles  at  $3.00  per  gross.  At  the  above  rates  the 
duties  on  ardent  liquors  remained  until  18-16,  when  an  ad 
valorem  duty  of  one  hundred  per  cent,  was  imposed  on  them. 

In  these  laws,  so  far  as  they  relate  to  intoxicants,  there  is  no 
essential  departure  from  the  spirit  sought  to  be  characterized 
in  the  preceding  chapter.  If  anything,  the  disposition  to  afford 
protection  to  domestic  agriculture  at  all  hazards,  was  more 
sharply  defined,  more  pointedly  formulated  than  ever  before. 
x\nd  what  seems  most  significant  is  the  fact  that,  while,  general- 
ly speaking,  the  opposition  to  protection  centered  its  forces 
(whether  justifiably  or  not,  it  is  not  our  province  to  determine) 
on  the  argument,  that  manufactures  were  fostered  at  the  ex- 
pense of  agriculture — in  the  matter  of  ardent  spirits  the  position 
is  found  to  be  completely  reversed.  In  order  that  the  grain- 
growers  might  find  a  market  for  their  surplus  produce,  the  dis- 
tilleries of  JS"ew  England,  closely  interlinked  with  the  most 
important  sources  of  wealth  of  those  parts,  were  readily  sacri- 
ficed, by  an  exorbitant  tax  on  molasses,  notwithstanding  the 
fact,  that  about  five-eighths  of  the  entire  quantity  of  this  article 
was  consumed  in  the  raw  state,  being,  in  reality,  as  much  a 
necessary  of  life,  in  some  of  the  Eastern  States,  as  any  article 
of  diet,  excepting  bread.  The  tax  of  five  cents  on  a  gallon  of 
molasses,  not  to  speak  at  all  of  the  exorbitant  double  tax  levied 
during  the  years  1828-30,  was  an  unjust  burden  placed  upon  the 
poorer  portion  of  the  population,  in  order  to  foster  whiskey  dis- 
tilleries ;  and  there  could  be  little  doubt  about  that.  It  was 
conclusively  proved  that  only  three-eighths  of  the  quantity  of 
molasses  imported  from  the  West  Indies  was  manufactured 
into  rum ;  the  rest  was  consumed  in  the  raw  state  by  the  people 
who  obtained  it  in  exchange  for  their  lumber  or  for  the  product 
of  their  fisheries.  They  used  it  every  day,  as  one  of  their 
representatives  said,  in  their  humble  fare,  upon  cakes  and  pud- 
dings, as  a  cheap  substitute  for  sugar,  in  all  their  cookery, 
and  for  other  domestic  purposes.      It  entered  copiously  into  the 


176  LIQUOK   LAWS    OF   THE   UNITED    STATES. 

coTTiposition  of  heer^  and  various  hinds  of  driuTc,  which  formed 
wholesome  and  valuable  substitutes  for  ardent  spirits.*  It 
was  shown  by  way  of  an  example  of  the  importance  of  mo- 
lasses, as  a  factor  in  the  wealth-producing  capacity  of  some  of 
the  New  England  States,  that  in  one  single  year  (1827)  the 
district  of  Portland,  Maine,  shipped  26,000,000  feet  of  boards, 
scantling,  &c.,  to  the  West  Indies,  the  return  cargoes  bringing 
home  3,890,321  gallons  of  molasses.  This  comparatively  exten- 
sive trade,  with  which  were  associated  a  number  of  domestic 
industries,  and  upon  which  depended  the  supply  of  a  necessary 
of  life,  was  loaded  with  an  uncommonly  heavy  and  entirely 
unjust  burden,  in  order  that  the  grain-growers  might  have  a 
monopoly  of  indirectly  supplying  the  entire  demand  for  ardent 
spirits.  Whereas  whiskey,  the  very  article  which  in  all  reason 
should  have  been  taxed  to  its  utmost  capacity  of  bearing  tax- 
burdens,  was  left  entirely  tax-free,  a  necessary  article  of  food  had 
to  bear  a  tax  amounting  to  over  sixty  per  cent,  of  its  prime  cost,t 
and  a  number  of  domestic  industries  were  placed  in  jeopardy. 
Virtually,  then,  a  luxury  in  all  the  word  implies — and  a  luxury 
too,  the  excessive  indulgence  of  which  formed  a  theme  of 
ethical  lamentations  and  the  subject  of  much  corrective  legis- 
lation— was  protected  against  the  competition   of   an  article 


*  Benton's  Debates  of  Congress,  Vol.  X,  p.  58.  When  tlie  tariff  of  1828 
was  being  discussed,  Hunt,  in  giving  a  summary  of  the  objections  to  a  high 
duty  on  molasses,  said,  among  other  things,  that  Maine  would  suflPer  most 
under  such  a  burden.  "  The  fisheries,"  he  said,  "  where  are  formed  the 
bone  and  sinew  of  the  navy  and  which  the  vigilant  policy  of  our  Govern- 
ment has  ever  delighted  to  encourage  and  protect,  would  wither  at  the  loss 
of  any  important  branch  of  our  trade  with  the  West  Indies.  During  the 
five  years  from  1823  to  1826,  the  dried  and  pickled  fish,  fish  and  whale  oil, 
spermaceti  candles,  &c.,  which  were  sold  in  the  West  Indies,  amounted, 
upon  an  average  to  $989,770  per  annum,  being  about  twice  the  amount 
which  was  exported  to  all  the  other  parts  of  the  globe.  These  islands  are 
the  great  foreign  receptacles  for  our  products  of  the  sea." 

\  The  average  prime  cost  of  molasses  in  the  West  Indies  was  8i  cents. 


CHAPTER  vni.  177 

of  food  at  the  expense  of  sundry  manufactures,  merely  to 
please  those  agriculturists,  who  had  conceived  it  to  be  their 
inalienable  right  to  have  domestic  grain  distilleries  forced  into 
existence  for  their  special  benefit,  and  who  had  taken  singu- 
larly effective  precautions  against  an  internal  taxation  on  these 
distilleries. 

It  would  be  an  unwarrantable  reflection  on  the  intellect  of 
such  men  as  Benton,  to  admit  even  a  doubt  as  to  whether  they 
understood  to  what  this  unrestricted  distillation  had  already 
led,  and  would  still  further  lead  to.  The  reasons  why  they 
did  not  take  preventive  measures,  although  they  understood 
the  necessity  for  them,  need  not  be  recounted.  An  abund- 
ance of  evidence  is  at  hand,  however,  to  prove  that 
whenever  Congress  had  an  opportunity  of  legitimately  fur- 
thering the  cause  of  temperance,  without  displeasing  the 
farmers,  they  readily  availed  themselves  of  it.  To  the  class 
of  laws  enacted  in  that  spirit  belong  all  those  acts,  which 
aim  at  the  encouragement  of  the  use  of  fermented  drinks,  as, 
for  instance,  the  sale  of  lands  to  French  emigrants  on  the  ex- 
press condition  that  they  cultivate  grape-vine ;  the  reduction  of 
import  duties  on  cheap  table  wines — the  chances  of  a  sufficient 
domestic  production  being  as  yet  too  problematical — and, 
finally,  the  increase  of  duties  on  ale,  beer  and  porter,  together 
with  the  particular  protection  of  materials,  the  want  of 
which  seemed  to  retard  the  brewing  industry.  The  adop- 
tion of  such  measures,  no  less  than  the  many  reports  and 
speeches  heretofore  quoted,  clearly  prove  that  the  law-makers 
were  fully  aware  of  the  moral  agency  which  the  mem- 
bers of  the  first  Congress  assigned  to  fermented  drinks,  and 
that  they  were  willing  to  do  all  they  could  to  encourage  the 
production  of  these  wholesome  beverages  •  but,  on  the  other 
hand,  the  evasive  manner  in  which  they  treated  the  ques- 
tion of  temperance,  whenever  the  interests  of  the  grain-growers 
were  involved,  proved  that,  mistaking  a  prejudice,  artificially 


178  LIQUOK  LAWS   OF  THE   TNITED   STATES. 

Stimulated  and  sustained,  for  the  just  will  of  the  people,  they 
were  afraid  to  adopt  the  only  means,  by  which,  in  the  absence 
oichecq)  and  palatable  fermented  liquors,  the  evil  of  intemper- 
ance could  have  been  lessened.  Taking  for  granted  the 
sincerity  of  such  utterances  as  those  of  Benton  in  reference  to 
the  superiority  of  whiskey  over  rum,  the  taxing  of  molasses, 
almost  to  the  amount  of  its  value,  might  be  construed  as  having 
a  moral  purpose ;  but  there  is  this  fact  in  conflict  with  such 
construction,  that  up  to  1S42  the  import  duties  on  spirits 
manufactured  from  molasses  were  lower  by  from  four  to 
fifteen  cents  per  gallon,  than  those  upon  spirits  manufactured 
from  grain.  Had  a  moral  purpose  prompted  the  tax  on 
molasses,  it  would,  for  the  sake  of  consistency,  have  also 
dictated  an  increase  of  duties  on  spirits  made  from  this 
article.  The  fact  that  it  was  not  done,  that,  in  truth,  a  differ- 
ence in  the  protective  duties  existed  in  favor  of  spirits  from 
grain,  reveals  the  true  animus  of  the  utterances  alluded  to. 

The  description  of  the  state  of  affairs,  contained  in  this 
chapter,  leaves  no  uncertainty  as  to  the  extent  to  which  the 
liquor  question,  in  all  its  various  aspects,  was  made  a  veritable 
football  of  an  intricate  complication  of  conflicting  interests,  of 
contradictory  opinions  and  sentiments — all  tending,  however,  to 
the  encouragement  of  agriculture,  which,  calling  the  thing  by 
its  right  name,  meant  the  protection  of  the  whiskey  distilleries. 
From  1818  to  1846,  in  fact  to  1857,  whiskey  was  thoroughly 
protected  against  competition  from  without,  while  its  manu- 
facture was  wholly  unrestricted  within  the  United  States. 
Under  such  circumstances,  a  miracle  only  could  have  shielded 
the  land  from  the  results  of  excessive  indulgence. 

That  these  results  were,  nevertheless,  not  as  disastrous  as 
in  other  countries,  similarly  situated  in  the  matter  of  cheap- 
ness of  ardent  spirits  and  facilities  of  obtaining  them — as, 
for  instance,  in  Sweden  and  Denmark — is  to  be  ascribed 
first,   to  the  counteracting  agencies,    whose   genn    the   wis- 


CHAPTER   VIII.  179 

dom  of  patriotic  statesmen  liad  sown  in  the  early  days  of 
the  Eepublic ;  secondly,  to  the  large  influx  of  emigrants  of 
moderate  drinking  habits ;  thirdly,  to  the  influence  of  civiliza- 
tion and  refinement,  and,  lastly,  to  that  temperance  agitation 
which  for  its  success  depended  entirely  upon  moral  suasion 
and  the  formative  power  of  good  example. 


CHAPTER    IX. 

RESULTS   OF   THE    "  FKEE   WHISKEY  "    POLICY. INEBKIETY  IN  THE 

RURAL    districts;    clergymen,   WOMEN   AND    CHILDREN   AD- 
DICTED  TO   THE  VICE. TESTIMONY  OF  TEMPERANCE  AUTHORS. 

WORK    OF    TEMPERANCE    SOCIETIES  ;    THEIR  MORAL  EFFORTS 

DIRECTED  AGAINST  ARDENT   SPIRITS  ;    BENEFICENT   INFLUENCE 

OF   THEIR    AGITATION. STRUGGLE  BETWEEN  MODERATES  AND 

EXTREMISTS. SPLIT   IN    THE  TEMPERANCE   PARTY  IN  1836. 

THE  AGITATION  TRANSPLANTED  FROM  THE   DOMAIN  OF  MORAL 

SUASION    TO     THE     LEGISLATIVE    FIELD. FERMENTED    DRINKS 

CLASSED    WITH    ARDENT    SPIRITS. ABSURDITY  OF    MEANS  AND 

ENDS. VARIOUS     AGENCIES     COUNTERACTING     THE     EVILS    OF 

DRUNKENNESS  '.     PROGRESS     OF     THE     NATION  ;      INFLUX     OF 
EMIGRANTS  ;      GROWTH     OF     BREWING     INDUSTRY   AND     WINE 

CULTURE. WALKER,     IN      1845,     PROPOSES      A      TARIFF     FOE 

REVENUE  ONLY ;   MEXICAN  WAR  PREVENTS  ADOPTION    OF   ALL 

HIS   PROPOSITIONS  ;    HIS     PRINCIPLES    ACTED     ON. CONTINUFD 

OPPOSITION    TO    EXCISE     ON    SPIRITS. REVENUE    TARIFF    OF 

1857,     SUPPLANTED    BY    MORRILL    TARIFF. STATE     OF    THE 

DRINK    QUESTION   IN    1860. 

The  condition  of  things  which  led  to  the  agitation  in  favor 
of  temperate  drinking  usages  has  not  yet  found  an  impartial 
historian,  and  it  is  questionable  whether  this  generation,  or 
even  the  next,  will  produce  that  marvelous  being  who  could 
succeed  in  writing  a  history  which  one  side  or  the  other  would 
not  indignantly  reject  as  wholly  unworthy  of  confidence  and 
belief.  Yet  a  few  facts  there  are,  which  neither  master- 
logician  nor  master-orator  can  possibly  explain  away  or  ar- 
gue out  of  existence — facts  whose  repositories  are  the  statute 
books  and  legislative  records  of  the  country.     One  of  these 


CHAPTER   IX. 


181 


facts  is,  that  whatever  misery  our  population  had  to  endure  in 
consequence  of  drunkenness  is  due  to  the  selfishness  of  a  great 
part  of  the  rural  population,  in  whose  favor  political  opportun- 
ism dictated  those  laws  and  revocations  of  laws  which  made 
whiskey  almost  as  free  as  water.  Another  fact,  growing  out 
of  the  first,  is,  that  from  the  beginning  the  rural  districts  were 
the  hot-beds  of  intemperance,  the  scenes  of  the  wildest  drunken 
revelries  as  well  as  of  the  greatest  demoralization,  consequent 
upon  unbridled  intemperance ;  and  a  third  fact  is,  that,  by  a 
natural  reaction,  the  same  localities  became  the  birthplace 
and,  subsequently,  the  strongholds  of  the  temperance  agitation. 
"Where  the  evil  was  greatest,  there  the  crisis  must  of  necessity 
have  been  most  acute,  the  reaction  most  complete.  Hence 
we  find  the  earliest  traces  of  this  agitation  in  the  rural 
districts,  where  the  vice  of  drunkenness  had  fullest  sway.  It 
is  almost  impossible  to  form  a  correct  idea  of  the  drinking 
habits  prevalent  in  those  days,  without  knowing  the  manner 
of  life,  the  occupation  and  surroundings  of  the  people  living 
in  the  most  infected  localities.  Farm  life  was  not  then  the 
refined  state  of  existence  which  the  dweller  in  crowded  cities 
of  to-day  has  so  much  reason  enviously  to  admire ;  it  was  a 
life  of  continuous  hardships,  of  few  comforts  and  fewer  recre- 
ations— a  condition  calling  forth  all  the  aggressive  qualities 
of  sturdy  manhood,  but  in  nowise  appealing  to,  or  cultivating, 
the  finer  sensibilities  of  man.  Even  the  few  persons  who,  by 
their  education  and  calling,  were  enabled  to  lift  themselves  to 
a  higher  level,  succumbed  to  the  force  of  their  environment, 
living  up  to  the  homely  proverb,  that  being  among  wolves  one 
must  howl  with  them.  We  have  it  on  the  authority  of  Leb- 
beus  Armstrong,  of  Coxe,  of  Eush,  of  John  Marsh*  and 
others,  that,  in  the  country,  clergymen  drank  as  hard  as  their 


*  "  The  Temperance  Reformation,"  by  L.Armstrong.     "Temperance 
Recollections,"  by  John  Marsh. 


182  LIQUOR   LAWS   OF   THE   UNITED    STATES. 

parishioners ;  that  women  and  children  joined  in  the  revels ; 
and  that  it  was  no  more  uncommon  to  meet  a  tipsy  clergyman 
than  to  see  a  woman  or  a  half-grown  boy  staggering  under  an 
overload  of  spirits,  or  a  farm-hand  lying  "blind-drunk"  by 
the  road  side.  In  his  "  Temperance  Kecollections,"  Marsh,  de- 
scribing the  mode  of  life  of  the  people  of  Haddam,  a  little  vil- 
lage in  Connecticut,  where  he  had  pastoral  charge  of  the  Con- 
gregational Church,  says  that  they  were  "  a  staunch,  well-in- 
formed, but  plain  people,  whose  labors  were  in  ship-yards, 
coasting,  fishing,  quarrying  and  farming ;  labors  in  which  ar- 
dent spirits  was  a  daily  ration  at  elerven  and  four  as  regularly 
as  food  was  provided  at  other  hours.  A  pitcher  of  water,  as  a 
part  of  table  furniture  was  unknown.  No  one,  not  the  most 
delicate  female,  used  it."  At  his  ordination,  in  1818,  the 
council,  composed  of  some  thirty  ministers  and  delegates,  as- 
sembled in  a  large  tavern  chamber ;  among  that  respectable 
number  of  good  men  there  was  just  one  "  who  had  thrown  off 
the  dominion  of  King  Alcohol,"  and  he,  of  course,  with  the 
zeal  characteristic  of  converts,  delivered  himself  of  a  dreadful 
admonition,  as  often  as  a  glass  of  brandy  was  raised  to  the  lips 
of  one  of  the  company.  "  At  length,"  says  Marsh,  "  one  of 
the  Fathers,  provoked  beyond  measure,  by  this  stop  put  to  the 
drinking  custom,  said,  with  a  loud  voice  :  '  Mr.  C,  do  you  let 
Brother  K.  alone  and  let  him  have  his  drink ;  you  are  a  real 
pest,  a  genuine  blackguard.'  "  This  forcible  reprimand  put 
an  end  to  Brother  C.'s  exhortations.  As  an  illustration  of  the 
prevalence  of  intemperance  the  same  author  cites  the  fact, 
that  in  his  church  "  seven-eighths  of  the  cases  of  discipline  were 
for  the  sin  of  drunkenness."  Not  to  drink  and  give  drink  was 
deemed  a  violation  of  good  manners,  exposing  the  infractor  to 
the  suspicion  either  of  haughtiness  or  of  unsoundness  of  mind. 
Thus  Marsh  tells  us  that  "  two  respectable  members  of  the 
church  had  planted  themselves  on  the  doctrine  of  abstinence, 
and  they  would  not  give  strong  drink  to  those  they  employed; 


CHAPTER   IX.  183 

but  their  action  was  viewed  as  a  singular  freak,"  It  must 
iiave  been  viewed  as  worse  than  a  freak,  inasmuch  as  it  was 
supposed  to  militate  against  the  prosperity  of  the  small  commu- 
nity, for  Marsh  says,  ''  a  large  distillery  was  considered  a 
great  blessing,  and  stores,  kept  by  church  members,  freely 
dealt  out  the  poison  without  rejjroach  or  sense  of  wrong-do- 
ing." In  this  small  place,  having  a  few  hundred  inhabitants, 
fifty-two  hogsheads  of  New  England  rum  were  consumed  in  a 
single  year  (1818). 

In  the  lumber  regions  of  New  York,  the  home  of  the 
first  American  temperance  society,*  drunkenness  prevailed 
to  as  great  an  extent  as  in  the  lumber  regions  of  Maine, 
where  economic  considerations  conspired  with  the  mode 
of  life  of  the  people  to  render  drinking  almost  a  neces- 
sity. Armstrong,  although  his  zeal  frequently  overreaches 
its  object  whenever,  in  his  readable  work,  he  endeavors  to 
draw  general  conclusions  from  personal  experiences,  may  yet 
safely  be  relied  on  as  a  truthful  narrator  of  episodes  coming 
under  his  observation  ;  and  some  of  these  serve  as  a  good  in- 
dex to  the  state  of  affairs  in  the  rural  districts  of  New  York. 
He  tells  of  the  half-grown  son  of  a  laboring  man,  who,  when 
asked  what  would  be  his  choice  between  a  good  education  and 
a  hogshead  of  whiskey,  decided  in  favor  of  the  latter,  in  these 
words:  "I  would  take  the  whiskey  if  I  could  have  it  for  a 
wish  rather  than  all  the  larnin  in  the  world ;  for  dad  loves 
whiskey,  and  mam  loves  whiskey,  and  I  love  it,  and  if  we 
can  only  have  anuf  on  it,  who  cares  for  anything  else !  '■* 
That  women  were  addicted  to  hard  drinking  in  this  author's 
rural  home,  is  manifest  from  the  fact  that  temperance  exhor- 
tations were  sometimes  especially  addressed  to  them.  Shortly 
before  the  delivery  of  one  of  his  lectures  m  East  Line  school- 

*  The  "  Temperance  Society  of  Morean  and  Northumberland  "  was  or, 
ganized  as  early  as  1808,  m  Morean,  a  town  in  Saratoga  county,  its  mem. 
bars  pledged  themselves  to  total  abstinence  from  distilled  spirits. 


184  LIQUOK   LAWS   OF   THE   UNITED    STATES 

house,  in  1833,  Armstrong  had  attended  the  funeral  of  a  female 
drunkard,  who  was  burned  to  death,  and  this  event,  recaUing 
to  his  memory  many  similar  occurrences,  formed  part  of 
the  subject  of  his  discourse.  He  there  spoke  of  the  "  awful 
spectacle,  when  women  have  surmounted  a  sense  of  shame 
and  disgrace  and  every  other  obstruction  to  the  gratification 
of  their  appetite  for  strong  drink,  till  they  not  only  become 
drunkards,  but  under  the  influence  of  their  besotted  habit, 
have  poisoned  their  husbands,  killed  their  children,  murdered 
their  souls  and  left  the  world  in  despair." 

The  illustrations  here  quoted  are  typical  of  the  descriptions 
fiirnished  us  by  the  temperance  authors  of  the  time,  and  no 
good  reason  exists  for  doubting  them.  There  was  unquestion- 
ably even  then,  though  the  evil  was  at  its  height,  a  good  share 
of  exaggeration,  a  tendency  to  surcharge  facts,  horrible  enough 
in  themselves,  by  blood-curdling  hyperbolism  ;  but  to  all  of  it 
there  surely  was  a  broad  foundation  of  melancholy  actuality, 
scarcely  understood  at  present.  Unlike  the  counterfeit  thing 
of  our  days — counterfeit,  because  in  the  absence  of  any  real 
need  for  it,  it  serves  selfish  ends — the  agitation  of  the  past 
has  a  ring  of  sincerity  that  cannot  be  mistaken.  The  agitators, 
no  doubt,  made  mistakes,  often  confounded  cause  and  effect, 
experimented  with  remedies  more  destructive  in  many  in- 
stances than  the  malady ;  but  they  were  sincere,  and  did  what, 
in  the  light  that  was  given  them,  they  thought  would  rescue 
the  country  from  a  great  social  evil.  More  than  foolhardy  and 
unjust  would  it  be  to  assert  that  they  have  not  accomplished 
inestimable  good,  so  long  as  they  contented  themselves  with 
moral  suasion.  One  may,  indeed,  smile  at  the  fiery,  over, 
wrought  eloquence  of  a  Gough,*  but  one  cannot  withhold  from 

*  A  popular  lecturer  of  tlie  cause,  whose  style  of  oratory  will  be  under- 
stood from  the  following  extract  from  one  of  his  discourses  : 

What  brings  yon  trembling  wretch  upon  the  gallows  ?  It  is  drink.  And 
we  might  call  upon  the  tomb  to  break  forth.     Ye  mouldering  victims  1  wipe 


CHAPTER   IX.  185 

the  spirit  that  dictated  it  a  tribute  of  sincere  admiration,  nor  re- 
frain from  lauding  the  ends  it  achieved.  It  is  said  f  that  in 
May,  1831,  no  less  than  nineteen  State  societies,  embodying 
3,000  local  associations,  were  reported  as  having  been  foruied 
on  the  basis  of  total  abstinence  from  the  use  of  ardent  spirits 
as  a  beverage.  In  the  State  of  New  York,  $6,250,000  were 
said  to  have  been  saved  to  the  population  in  the  same  year  in 
the  diminished  use  of  ardent  spirits;  the  societies  claimed  "to 
have  rescued  3,000  drunkards  and  more  than  10,000  men  who 
had  been  on  the  road  to  habitual  drunkeness.  "  More  than  a 
thousand  distilleries  had  been  stopped,"  says  Marsh,  and  to 
consummate  all  this  no  other  means  were  used  than  the  power 
which  the  eloquence  and  sincerity  of  good  men  are  apt  to  exer- 
cise over  the  masses.  It  must  be  remembered  that  the  agita- 
tion was  not  confined  to  this  country  ;  in  the  British  Isles  and 
some  parts  of  the  European  continent,  a  veritable  crusade  had 
been  inaugurated  against  what  the  Germans  called  the  Braiint- 
wein-Pest.  It  was  supported  by  eminent  men  of  all  classes. 
It  is  not,  then,  to  be  wondered  at,  that  in  1831  the  so-called 
Washingtonian  Band  found  such  men  as  Attorney-General 
William  Wirt,  Daniel  Webster,  John  Sargent,  Theodore  Fre- 
linghuysen  and  others,  willing  to  lend  their  cause  moral  aid, 


tte  grave  dust  crumbling  from  your  brow ;  stalk  forth  in  your  tattered 
shrouds  and  bony  whiteness  to  testify  against  the  drink  !  Come,  come  from 
the  gallows,  you  spirit-maddened  man-slayer,  give  up  your  bloody  knife, 
and  stalk  forth  to  testify  against  it !  Crawl  from  the  slimy  ooze,  ye  drowned 
drunkards,  and  with  suffocation's  blue  and  livid  lips  speak  out  against  the 
drink !  Unroll  the  record  of  the  past,  and  let  the  Recording  Angel  read  out 
the  murder  indictments,  written  in  God's  book  of  remembrance  !  aye  !  let  the 
past  be  unfolded,  and  the  shrieksof  victims  wailing  be  borne  down  upon  the 
night  blast!  Snap  your  burning  chains,  ye  denizens  of  the  pit,  and  come 
up  sheeted  in  the  fire,  dripping  with  the  flames  of  hell,  and  with  your 
trumpet  tongues  testify  against  the  damnation  of  the  drink. 

f  By  John  Marsh,  who    as  secretary   and  editor  of  the  Temperance 
Union,  had  good  opportunities  of  knowing.     See  his  "  Recollections  "  p.  36. 


186  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

nor  that,  with  such  assistance  and  the  help  of  the  public  press, 
a  deep  impression  was  made  on  the  public  mind.  No  loftier 
examples  of  Christian  charity  can  1)e  conceived  than  the  deeds 
of  those  earlv  temperance  apostles,  who,  without  any  other 
aim  than  the  welfare  of  their  fellow-beings,  gave  their  time^ 
their  labor  and  means  for  the  good  cause.  Would  that  their 
wisdom  had  at  all  times  been  equal  to  their  good  intentions  ! 
Up  to  183-i  the  movement  generally  remained  within  the 
bounds  prescribed  by  reason,  sound  judgment  and  the  lessons 
of  experience ;  at  the  first  National  Temperance  Convention, 
held  in  May,  1833,  ardent  liquor  was  still  the  only  stimulant 
against  which  the  joint  efibrts  were  directed ;  "  the  sale  of  none 
other,"  says  Marsh,  "  was  considered  morally  wrong."  The 
means  contemplated  to  be  employed  appear  from  the  following 
extract  from  the  resolutions  adopted  at  that  convention  : 

Resolved^  That  the  object  of  this  Union  shall  he,  hy  the 
diffusion  of  information,  and  the  exertion  of  kind  moral 
influence,  to  promote  the  cause  of  Temperance  throughout 
the  United  States. 

Unfortunately  this  spirit  of  moderation  soon  gave  room  to  a 
form  of  zeal  which  rapidly  degenerated  into  zealotism  of  the 
most  dangerous  order.  The  slow  process  of  reforming  the 
habits  of  men  by  appealing  to  their  reason,  their  pride  and 
manhood,  no  longer  satisfied  a  great  portion  of  the  friends  of 
temperance.  They  conceived  the  idea  of  a  legal  enforcement 
of  their  doctrine  of  abstinence,  and  in  this  they  soon  in- 
cluded the  very  beverages  which,  here  and  elsewhere,  men  of 
talent  and  experience  had,  from  the  beginning,  relied  on  as  a 
means  of  eradicating  the  evils  of  intemperance.  As  early  as 
1835  Albany  brewers  felt  constrained  to  sue  for  libel  a  wealthy 
zealot,  who,  unable  to  contradict  the  assertion  that  beer  was 
virtually  a  temperance  drink,  published  a  statement  to  the 
effect,  that  deleterious  materials  and  filthy  water  were  used  in 
the  manufacture  of  beer.     In  the  Saratoga  Convention  (1836) 


CHAPTER    IX.  187 

these  allegations  found  a  strong  echo,  and  were  hotlj  discussed 
and  stubbonilj  combatied,  so  stubbornly,  indeed,  that  a  re- 
solution, classing  fermented  beverages  with  ardent  spirits 
and  enjoining  total  abstinence  from  both,  brought  on  a 
rupture,  which  in  a  short  time  grew  into  a  permanent 
schism,  dividing  the  society  into  two  wings — one  composed 
of  moderate,  rational  temperance  advocates,  and  the  other 
composed  of  extremists,  the  precursors  of  the  prohibitionists 
of  our  day.  The  latter  wing  at  once  initiated  a  series  of 
movements  favoring  the  enactment  of  laws  prohibiting  the 
manufacture  and  sale  of  ardent  spirits.  In  1838  Maine  took 
the  lead  in  this  agitation,  a  committee  of  the  Legislature  of 
this  State  recommending,  "  that  the  law  giving  the  right  to 
sell  ardent  spirits  should  be  repealed,  and  a  law  prohibiting, 
except  for  the  arts  and  medical  use,  be  passed."  Massachusetts 
followed  with  the  so-called  Fifteen  Gallon  Law,  which  prohibi- 
ted the  sale  of  ardent  spirits  in  less  quantity  than  the  name 
indicates.  Afterwards  the  question  of  licensing  retailers  of 
Spirits  was  ventilated  in  various  ways,  and,  singularly  enough, 
in  some  instances  the  retailers  failed  to  see,  that  a  license  system 
would  have  the  effect  of  a  dam  against  the  torrent  of  pro- 
hibitory efforts  of  their  opponents.  A  body  of  Massachu- 
setts spirit-venders  appealed  to  the  Supreme  Court  againstthe  en- 
forcement of  a  law  of  their  State  making  it  a  criminal  offense  for 
any  person  to  sell  without  license.  The  action  became  a  cause 
ceUhre^  no  less  because  of  the  constitutional  question  involved, 
than  on  account  of  the  prominence  of  the  jurists  engaged  on 
both  sides — Webster  and  Choate  for  the  appellants,  Asabel 
Huntington  for  the  State.  Enraged  at  the  opposition  thus 
offered,  the  ultras  at  once  agitated  uniformly  for :  No  License. 
It  was  in  the  course  of  this  movement,  that  the  people  of  the 
State  of  New  York  (in  1846)  decided  by  a  popular  vote  not  to 
license  venders  of  intoxicating  drinks.  The  succeeding  year 
brought  the  decision  of  the  Supreme  Court  of  the  United  States 


188  LIQUOR    LAWS    OF    THE    TNITED    STATES. 

in  the  Massachusetts  case,  acknowledging  the  right  of  the 
States  to  regulate  the  liquor  traffic.  At  about  the  same  time 
an  event  transpired  which  proved  a  serious  blow  to  personal 
liberty  as  well  as  to  true  temperance,  viz :  the  enactment  of 
a  prohibitory  law  by  the  Legislature  of  the  State  of  Maine, 
which  was  superseded  in  1851  by  Neal  Dow's  law. 

As  a  detailed  description  of  the  liquor  laws  of  the  various 
States,  the  spirit  in  which  they  were  conceived  and  the  manner 
in  which  they  operated,  is  to  be  given  hereafter,*  it  is  unneces- 
sary to  present  more  than  the  foregoing  rough  outline  of  the 
temperance  movement  in  the  Union.  From  the  time,  when  the 
sound  principles  upon  which  the  Wasliingtonian  Band  began 
its  operations,  were  abandoned,  the  cause  of  temperance  was 
endangered  more  seriously  by  its  alleged  friends  than  by  its 
enemies.  The  aim  of  the  extremists  was  absurd  ;  necessarily, 
their  means  were  no  better ;  and  if  in  the  whole  agitation  for 
prohibition  there  is  anyone  feature  more  strikingly  absurd  than 
the  others,  it  is  the  readiness  with  which  the  empiricism  of  ambi- 
tious quidains  was  elevated  to  the  dignity  of  scientific  maxims. 
Nothing  was  too  ludicrous,  too  absurd,  to  be  employed  in  fur- 
therance of  prohibition,  and  thus  it  became  possible  that  men, 
who  under  ordinary  circumstances  would  have  been  declared 
monomaniacs,  became  the  guiding  minds  of  the  new  departure. 
Nothing  could  be  more  revolting  to  a  true  Christian  mind  than 
the  rautings  of  those  extremists  who  had  conceived  the  scheme 
of  clothing  their  teachings  in  a  theological  garb ;  indeed,  the 
blasphemous  spirit  in  which  religious  sentiment  was  profaned 
throws  a  strong  light  on  the  character  of  the  agitation.  One 
can  scarcely  believe  what  abominable  nonsense  the  American 
people — eminently  practical  and  clear-headed  as  they  are  de. 
servedly  reputed  to  be  the  world  over — were  in  those  days  sup. 
posed  to  be  accessible  to.     As  a  sample  of  the  stuff  that  was 


*  See  Preface. 


CHAPTER    IX.  189 

dished  lip  for  them,  the  following  may  be  quoted  from  J. 
Root's  The  ho7'rors  of  deliTium  tremens^'  The  author  relates 
how,  a  few  days  after  a  drunken  revel,  he  loitered  in  his  room, 
'perfectly  sober^  cogitating  on  the  injuries  he  was  doing  him- 
self and  others  by  drinking  to  excess : 

"  While  I  was  occupied  there  with  these  reilections,  some  being  ap- 
peared to  address  me  in  a  very  familiar  manner,  as  if  we  were  old  acquaint, 
ances.  I  could  hear  the  language  very  distinctly,  though  it  was  uttered  in  a 
low  whisper,  as  if  he  were  afraid  some  others  might  hear,  and  I  soon  found 
that  if  I  made  any  remarks  in  the  same  low  voice,  they  were  perfectly  un- 
derstood and  a  reply  given  immediately.  A  conversation  was  then  com- 
menced, and  my  strange  visitor  seemed  to  know  many  of  the  transactions 
which  had  taken  place  during  my  life,  with  which  I  supposed  no  one  but 
myself  acquainted.  I  did  think  it  was  very  singular  and  strange  that  a 
being  whom  I  could  not  discern,  should  not  only  have  the  power  to  con- 
verse with  me,  but  also  a  better  knowledge  and  recollection  of  some  events 
in  my  life  than  I  had  myself.  But  though  I  was  at  some  loss  to  account 
for  the  information  which  he  so  evidently  possessed,  yet  I  was  not  in  the 
least  frightened  ;  my  only  feelings  so  far  as  I  can  now  recollect,  were  won- 
der, and  a  desire  to  find  out  who  or  what  it  was  that  addressed  me.  After 
conversing  with  my  mysterious  visitant  for  some  time  on  diflferent  subjects, 
all  of  which  he  appeared  to  understand  remarkably  well,  I  made  some  in- 
quiry with  a  view  to  find  out  with  whom  I  was  conversing.  He  replied  by 
saying  that  he  was  one  of  a  large  company,  that  were  going  through  the 
country  for  the  purpose  of  making  some  money,  but  by  what  means  he  did 
not  distinctly  explain.  He  represented  the  business  as  being  very  lucra- 
tive, and  asked  me  if  1  would  not  like  to  join  them  and  have  a  share  in 
whatever  they  made.  My  answer  was,  that  I  should  not  have  the  least  ob- 
jection, as  I  wanted  to  make  some  money,  and  should  like  to  know  in 
what  kind  of  business  they  were  engaged.  But  he  did  not  say  what  they 
were  doing,  and  only  remarked  that  it  was  profitable. 

Up  to  this  time,  our  conversation  had  been  carried  on  in  the  same 
manner  that  any  two  persons  would  converse  on  ordinary  topics  or  busi- 
ness. Singular  as  it  may  appear,  instead  of  being  either  annoyed  or 
frightened,  I  was  perfectly  at  ease,  or  rather  relieved ;  my  mind  was  taken 
oflF  from  reflecting,  and  taken  up  with  his  conversation,  which  appeared 
like  that  of  a  very  well  informed  gentlemen,  on  all  subjects  about  which 
we  conversed.  His  knowledge  was  indeed  wonderful,  for  he  appeared  not 
only  to  know  everything   but  also  everybody  whom  I  had  either  heard  of 

*  Published  by  Josiah  Adams,  New  York,  1844. 


190  LIQUOR   LAWS    OF   THE    UJflTED    STATES. 

or  known  ;  some  of  the  persons  lie  told  me  were  dead,  others  were  alive 
and  in  such  and  such  business,  and  he  seemed  to  be  quite  as  well  ac- 
quainted with  them  as  he  was  with  me. 

I  was  much  pleased  with  his  address,  which  was  easy  and  courteous, 
for  there  was  nothing  rude  or  improper  excepting  his  familiarity,  and  that 
he  seemed  to  be  rather  entitled  to  use,  on  account  of  his  knowledge  respect- 
ing my  affairs  ;  but  both  the  address  and  the  language  soon  changed,  after 
I  professed  my  willingness  to  become  one  of  the  company ;  he  then  re- 
quested me  to  step  into  the  next  room,  which  I  accordingly  did,  supposing 
he  would  there  disclose  their  business  and  let  me  know  what  they  were 
doing. 

But  I  had  no  sooner  entered  the  room,  than  there  appeared  to  be  quite 
a  number  of  them,  just  over  my  head,  all  talking  at  once,  and  addressing 
me  in  the  most  opprobrious  language,  which  was  now  as  profane  and  vin- 
dictive as  can  be  conceived.  Instead  of  that  courteous  treatment,  and  the 
information  which  I  expected  to  receive,  they  were  now  all  upbraiding  me 
for  my  wickedness,  calling  me  a  damned  fool  and  threatening  to  kill  me 
and  put  me  in  hell. 

Perhaps,  it  would  be  entirely  impossible  to  place  a  human  being  in  a 
situation  on  earth,  where  he  could  be  more  utterly  confounded  than  I  was, 
when  I  heard  those  very  devils,  whose  existence  I  had  denied,  arraign  and 
curse  me  with  such  bitter  malignity.  For  a  man  who  had  believed  only  a 
moment  before,  that  there  was  neither  a  God,  nor  devil,  nor  hell,  to  have 
all  three  demonstrated  to  him  in  an  instant,  and  in  such  a  manner  too— was 
certainly  calculated  to  startle  him  some,  as  well  as  to  change  his  faith. 

As  soon  as  I  recovered  from  the  shock  of  astonishment  into  which  this 
conduct  and  language  threw  me,  so  as  to  be  able  to  speak,  I  said,  "  What? 
Then  there  is  a  hell  ?  "— "  Yes— you  damned  fool— and  you  will  soon  be  in 
it,"  was  the  reply.  In  an  instant  the  thought  rushed  to  my  mind,— that,  if 
there  was  a  hell,  there  must  be  a  God,  a  heaven,  a  Savior,  and  the  bible 
was  true.  The  thought  had  scarcely  entered  my  mind,  when  they  replied, 
<«  Yes— you  damned  fool— it  is  so.  But  you  are  going  to  hell  with  us. 
You  have  lost  heaven  by  your  senseless  and  wicked  conduct,  when  you 
might  have  been  saved,  if  you  had  not  been  such  a  damned  fool. "  So 
great  was  their  furious  malice  that  they  cursed,  reviled  and  threatened,  as 
if  it  were  impossible  even  to  wait  until  my  horror  of  mind  should  kill  me, 
and  they  seemed  determined  to  crush  out  the  spirit  at  once  and  have  me  m 
their  power  immediately. 

Let  me  here  make  a  few  remarks  to  those  who  dislike  to  hear  so  much 
as  they  say  about  hell.  When  devils  get  human  beings  where  they  think 
they  are  sure  of  them— they  are  not  very  delicate  about  using  language, 
and  have  no  regard  for  ears  polite.     One  devil  can  say  more  about  hell  in 


CHAPTER   IX. 


191 


three  minutes  tlian  any  human  being  can  in  three  hours.  They  care  nothing 
about  the  dignity  and  standing  of  the  man,  who  would  not  hesitate  to  knock 
down  his  fellow-being,  who  should  call  him  a  fool,  and  tell  him  he  was  on 
the  road  to  hell.  Let  me  tell  those  who  reject  and  despise  the  gospel,  that 
if  devils  once  get  them  into  their  power,  they  will  hear  something  not  only 
about  hell,  but  also  about  their  own  folly,  in  conducting  themselves  (that 
is  to  say,  in  drinking),  so  as  to  be  sent  there. 

This  quotation  was  selected  to  show  the  reader  what  egre- 
gious nonsense  was  thought  necessary  to  frighten  the  people 
into  the  adoption  of  an  impracticable  plan.  Absurd  in  itself, 
the  project  had  to  rely  on  absurdities  for  its  consummation, 
and  here,  evidently,  the  end  was  thought  to  justify  the 
means.  All  this  does  not,  however,  detract  from  the  real 
merits  of  the  temperance  movement,  which  unquestionably 
helped  to  prevent,  to  some  extent,  the  spreading  of  the 
pernicious  effects  produced  by  the  successful  efforts  to  pro- 
tect domestic  distilleries  in  the  interest  of  agriculture,  and 
to  leave  them  entirely  unburdened  by  taxation,  for  the  same 
reason.  Of  course,  wherever  the  prohibitory  idea  was  incor- 
porated into  a  law,  temperate  drinking  habits,  which  a  sub- 
stitution of  fermented  drinks  might  have  produced — and  in 
our  time  has  produced  —  became  absolutely  impossible;*  in 
fact,  the  evil  grew  more  hideous  than  it  ever  was  before. 
But  Prohibition  was  happily  confined  to  but  a  few  localities, 
while  in  the  rest  of  the  Union  moral  suasion  helped,  m 
its  way,  to  work  out  the  great  problem.  The  fact  that  in 
1840  the  product  of  domestic  spirits,  as  returned  by  the 
census,  amounted  to  no  more  than  from  40,000,000  to  50,000,- 
000  gallons,  the  population  at  that  time  being  17,069,000, 
may  be  ascribed,  in  part,  to  the  temperance  agitation;  without 
it  and  without  other  countervailing  agencies,  the  /^er  caj.>ita 
consumption  in  1840,  1850  and  1860  would  presumably  have 
been  what  it  was  in  1810,  namely,  eighteen  quarts.  During 
the  three  decades  named  other  factors  helped  to  pave  the  way 


*  See  "  Real  and  Imaginary  Effects  of  Intemperance,  pp.  66-84. 


192  LIQUOK    LAWS    OF    THE    UI-flTED    STATES. 

to  a  reformation  of  the  drinking  usages  of  the  people.  Of 
themselves  these  factors  could  not  have  accomplished  such  a 
reformation,  but  they  laid  the  foundation  for  that  structure  of 
temperance,  the  erection  of  which  was  not  rendered  possible  until 
the  deplorable  war  between  the  North  and  the  South  compelled 
a  change  of  the  fiscal  policy  in  regard  to  the  liquor  traflfic. 

The  progress  of  civilization,  the  difi'nsion  of  knowledge 
among  the  laboring  people,  the  general  refinement  of  tastes 
and  inclinations  form  one  of  these  factors.  They  grew  out  of 
the  general  progress  of  the  country,  the  development  of 
domestic  manufactures  creating  not  only  opportunities  for  a 
great  diversity  of  in-door  employments,  but  also  a  variety  ot 
new  wants,  tending  to  render  life  more  comfortable,  more  re- 
fined. In  the  older  States  the  hardships  of  "  pioneering  it " 
against  the  numerous  obstacles  of  virgin  wildernessess  gave 
room  to  the  easy-going  methods  of  improved  agriculture. 
The  effect  which  this  progress  must  have  had  upon  the  drink- 
ing habits  of  the  people  will  be  better  understood,  when  it  is 
remembered  that  intemperance  was  always  most  prevalent  in 
lumber  regions  and  border  localities,  and  that  there,  according 
to  reliable  authorities,  the  primitive  mode  of  life,  the  hard- 
ships of  out-of-door  employment  and  the  want  of  recreation 
were  regarded  as  among  the  prime  causes  of  incontinence.* 
The  influx  of  emig-rants  of  moderate  drinkino'  habits  occasioned 
another  great  stride  in  the  path  of  temperance.  From  1810  to 
1850  the  number  of  breweries  increased  from  one  hundred  and 
twenty-nine  to  four  hundred  and  thirty-one ;  the  quantity  of 
malt  liquors  produced  in  the  Union  increased  during  the  same 
period  from  5,754,737  to  23,267,730  gallons,  of  which  latter 


*  "  There  can  be  no  doubt  that  drunkenness  prevails  more  in  a  rude  than 
in  a  civilized  state  of  society.  This  is  so  much  the  case,  that  as  men  get 
more  refined,  the  vice  will  gradually  be  found  to  soften  down,  and  assume 
a  less  revolting  character."  Robert  Macnish's  Anatomy  of  Drunkeness,  (p. 
2.)    New  York,  1835. 


CHAPTER   LK. 


193 


quantity  Pennsylvania  produced  12,765,974:,  New  York, 
6,059,122  gallons.  In  1815  the  manufacture  of  lager  beer 
was  lirst  introduced  into  the  United  States,  and  from  this  time 
onward  the  brewing  industry  developed  rapidly,  though  not 
at  a  ratio  to  be  in  any  manner  compared  with  its  astonishing 
development  since  the  war  of  the  rebellion.  The  cultiva- 
tion of  the  grape-vine  also  received  a  strong  impetus  through 
the  German  immigration,  particularly  after  1848.  The 
climate  and  soil  of  Central  New  York,  Southeastern  New 
Jersey,  Yirginia,  Northern  Ohio,  Michigan,  Missouri,  Texas 
and  California  offered  special  inducements  to  wine-growers, 
and  some  of  these  States  are  to-day  in  a  fair  way  to  rival  the 
Khenish  countries.  In  spite  of  the  many  difficulties  which 
attend  w^ine-culture,  the  home  produce  of  wine  in  1860 
amounted  to  1,627,192  gallons.  In  1810  only  11,655  gallons 
of  wine  were  produced  in  the  United  States,  of  which  2,525 
gallons  were  made  of  grapes,  and  9,130  gallons  of  currants. 
The  reduction  of  import  duties  on  wines,  particularly  those  of 
inferior  quality,  together  with  the  extreme  cheapness  of  ardent 
spirits,  unquestionably  delayed  the  development  of  this  highly 
important  branch  of  agriculture  ;  but  at  all  events  the  foun- 
dation laid  during  the  period  named  facilitated  the  mar- 
velous growth  of  later  years.  To  a  certain  extent — not  a 
very  considerable  one,  however — the  light  taxation  of  the 
articles  temporarily  helped  temperance,  inasmuch  as,  under  it, 
the  importation  of  cheap  wines  increased,  averaging  about 
3,500,000  annually  during  the  decade  1830-1810.  Compared 
with  the  earlier  periods,  1801-1810,  for  instance,  this  state  of 
the  imports  indicates  no  advance,  but  compared  with  the  status 
shortly  after  the  beginning  of  the  era  of  high  protective  tariffs, 
it  marks  an  appreciable  improvement. 

Insignificant  as  each  of  these  agencies  may  appear,  when 
separately  considered,  in  their  joint  influence  they  surely 
were  of  importance  in   preventing  a  still  greater  degree  of 


194  LIQUOR    LAWS    OF,  THE    UNITED    STATES. 

misery,  than  the  abuse  of  spirits  had  actually  occasioned.  The 
good  they  accomplished  by  keeping  bad  from  worse,  eludes 
every  attempt  at  computation. 

It  will  always  be  a  matter  for  surprise  and  regret,  that  when 
the  temperance  agitation  was  at  its  greatest  height,  and  when 
the  protective  idea  had  lost  most  of  its  force,  not  a  single  serious 
proposition  was  made  in  reference  to  what  every  sane  man  knew 
to  be  the  only  radical  remedy  against  the  evil  of  inebriety, 
namely :  the  restriction  of  distillation  by  internal  taxation. 
When,  in  1845,  E.  J.  Walker,  Secretary  of  the  Treasury 
under  Polk's  administration,  promulgated  his  economic  anti- 
thesis *  to  Hamilton's  report  on  manufactures,  it  was  well 
understood  that  under  the  proposed  regime  of  a  tariff  for  rev- 
enue only,  luxuries  were  to  be  taxed  at  the  highest  rate,  so  that 
even  then  spirits  would  be  most  protected,  because  its  rival 
foreign  product  would  be  most  heavily  taxed ;  yet  no  thought 
was  given  to  an  excise  on  the  article,  save  to  scout  the  idea  of 
its  practicability.  Surely,  the  popular  prejudice  against  it 
should  not  then  have  had  any  more  weight,  seeing  that  the 
leirislatures  of  some  States  went  so  far  as  to  entirelv  prohibit 
distillation. 

Walker's  first  tariff  propositions,  based  on  the  new  princi- 
ples and  adjusted  to  a  peace-footing,  would  perhaps  have  be- 
come law  in  1846  (although,  as  a  German  proverb  has  it, 
soups  are  rarely  eaten  as  hot  as  they  are  brought  from  the 
stove),  had  it  not  been  for  the  war  with  Mexico.     As  it  was, 


*  Report  of  the  Secretary  of  the  Treasury,  December  3rd,  1845,  in 
which  the  following  principles  are  enunciated,  viz  :  that  no  more  money 
should  be  collected  than  is  necessary  for  the  wants  of  the  Government  ; 
that  duties  should  only  be  laid  at  the  lowest  rate  yielding  the  largest  rev- 
enue ;  that  below  such  rates  discrimination  may  be  made,  descending  in  the 
scale  of  duties,  or,  for  imperative  reasons,  the  article  may  be  exempt  from 
duty  entirely  ;  that  the  maximum  duties  should  be  levied  on  luxuries  ;  that 
specific  duties  be  abolished,  and  that  the  duties  be  so  equitably  arranged 
as  to  discriminate  neither  for  nor  against  any  class  or  section. 


CHAPTER   IX  195 

the  elemental  parts  of  his  policy  were  adopted,  but  his  imme- 
diate propositions  as  to  the  rates  of  duties  had  to  be  so  enlarged 
as  to  answer  the  public  exigencies  of  a  war.  Under  the  new 
tariff  law,  approved  July  30th,  1846,  only  ad  valorem  duties 
were  imposed,  ranging,  in  eight  gradations,  from  five  to  one 
hundred  per  cent.  Between  the  first  grade  of  duties,  viz: 
100  per  cent.,  imposed  exclusively  on  spirituous  liquors,  and 
the  second  grade  there  was  a  difference  of  sixty  per  cent.  This 
second  class  comprised  spices,  manufactures  of  tobacco,  and 
wines  ;  the  next  grade  below  this  was  a  duty  of  30  per  cent,  on 
the  value,  and  in  this  schedule  we  find,  among  very  many 
other  articles,  ale,  beer  and  porter,  in  casks  and  bottles ;  and 
molasses.  The  rates  were  not  again  changed  until  the  spring 
of  1 857,*  when  the  opponents  of  Protection  found  a  potent 
ally  in  the  plethoric  condition  of  the  Treasury.  The  argu- 
ments were  not  new  on  either  side ;  the  friends  of  the  system 
claimed,  that,  in  order  to  insure  their  prosperity,  the  American 
people  must  manufacture  more,  import  less,  and  keep  their 
specie  at  home;  whereas  the  opponents  of  the  American 
system  maintained  that  the  glutting  of  the  Treasury  with  sur- 
plus revenues  produced  business  stagnations,  and  that  it  was 
unjust  to  make  the  consumer  pay  indirect  taxes  to  the  dom.estic 
manuf  acturer.f  The  latter  opinions  won  the  day,  and  a  great 
reduction  of  duties  was  effected  by  the  tariff  act  of  March  3rd, 
1857,  spirits  and  wines  being  taxed  thirty  per  cent,  on  their 
value;  molasses,  twenty-four  per  cent.,  and  ale,  beer  and 
porter  at  the  same  rate. 

The  interval  of  a  low  tariff  lasted  only  four  years,  as  the 
outbreak  of  the  Rebellion  necessitated  an  unprecedented  in- 
crease of  revenue ;  it  is  a  significant  fact,  however,  that  lefore 


*  Act  approved  March  3rd,  1857. 

\  Boyce,  of  South  Carolina,  asserted  that  the  indirect  taxes  thus  paid 
by  the  consumer  to  the  manufacturer  amounted,  up  to  1857,  to  $1,000,- 
000.000. 


196  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

this  increase  of  revenue  bad  become  necessary,  Mr.  Morrill  * 
introduced  tbe  tariff  bill  which  to  this  daj  bears  his  name— a  bill, 
in  the  framing  of  which  some  of  the  fundamental  propositions 
of  Walker's  policy  were  entirely  ignored ;  while  the  general 
ter.or  of  the  discussions  on  the  measure  seemed  to  indicate,  to 
say  the  least,  a  leaning  towards  a  protective  tariff.  At  all 
events,  a  strong  inclination  prevailed  to  make  the  insufficiency 
of  the  tariff  of  1857,  as  a  revenue  measure,  serve  as  a  cloak  for 
the  protection  of  various  manufactures.f 

The  duration  ot  the  low  tariff'  regime  was  so  short,  then, 
that  in  examining  the  general  effects  of  the  various  fiscal  and 
economic  policies  of  the  Government,  it  deserves  but  a  modi- 
cum of  consideration.  Practically,  the  policy  of  protecting 
domestic  distilleries — in  a  manner  sometimes  amounting  to  an 
inhibition  of  the  importation  of  foreign  spirits — lasted  forty 
years  ;  if  the  time  be  deducted  during  which,  previous  to  1820, 
ihe  excise  system  was  in  force,  the  protection  of  domestic 
spirits  and  their  absolute  exemption  from  taxes  may  be  said  to 
have  lasted  fifty-five  years.  This  double  encouragement,  together 
with  the  abundance  of  cereal  produce,  made  whiskey  so  cheap, 
that  in  no  country  of  the  civilized  world  could  one  indulge  his 
appetite  for  ardent  spirits  at  a  smaller  cost  than  in  the  United 
States.:}:  The  cheapness  of  the  article  necessarily  invited  ex- 
cessive consumption  ;  there  was  no  effectual  preventive  against 
that,  save  in  a  change  of  policy.  Tbe  evil  was  inevitable  • 
but  great  as  it  was,  the  people  of  the  United  States  have 
ample  cause  to  congratulate  themselves,  that  it  was  not 
greatei,  as  indeed,  without  the  conjunction  of  the  favorable 

*  In  Marcli,  18G0. 

•f  On  the  part  of  the  opponents  of  the  Morrill  tariff  it  was  claimed  that 
the  measure  -nas  in  the  nature  of  a  political  concession  to  Pennsylvania, 
whose  adhesion  to  the  Republican  party  was  alleged  to  have  been  condi 
tioned  on  the  partial  rehabilitation  of  the  American  system. 

i  In  1860  the  average  reiaU  price  of  whiskey  was  30  cents  per  gallon. 


CHAPTER   IX. 


197 


circumstances  already  mentioned,  it  would  unavoidably  liave 
been. 

The  per  capita  consumption  of  ardent  spirits  in  1860 
may  be  estimated  at  between  eight  and  nine  quarts.  The  total 
product,  as  returned  by  the  census  of  1860,  was  over  90,000,000 
gallons ;  of  this  quantity  at  least  25,000,000  gallons  were  used 
in  the  arts,  sciences  and  manufactures — leaving  for  consump- 
tion as  drink  and  for  export  about  65,000,000  gallons.  The 
exports  of  spirits  and  cordials  of  all  kinds  amounted  to 
4,437,132  gallons,  the  imports  to  6,448,362  gallons* — the  ex- 
cess of  the  latter  over  the  former  being  2,011,230.  The 
population  was  31,443,321. 

In  connection  with  what  has  already  been  said  concerning 
the  circumstances,  which  helped  to  counteract  the  tendency  to 
inebriety,  the  evident  change  for  the  better  will  be  more 
readily  understood  when  it  is  remembered,  that  the  "  foreign 
born"  part  of  the  population  increased,  from  1850  to  1860,  at 
the  rate  of  ninety  per  cent. — a  large  proportion  being  people 
of  moderate  drinking  habits — and  that  the  use  of  fermented 
drinks,  compared  with  the  total  population,  increased  at  a  far 
greater  rate,  as  will  be  seen  from  the  following  table : 


Year. 

Population. 

Product  of 
Hops,  in  lbs. 

Product  of 

Barley, 
in  bushels. 

Value  of 

Malt  liquor, 

brewed. 

=«.2 

o  ^ 
o  ^ 

pq 

Product  of 

Wine, 
in  gallons. 

1850 
1860 

23,191,876 
31,443,321 

3,497,029 
10,991,996 

5,167,015 
15,825,898 

$5,728,568 
$21,310,983 

431 
1269 

221,249 
1,627,192 

Thus  affairs  stood  when  the  outbreak  of  the  war  ushered 
in  a  complete  revolution  of  our  policy  and  liscal  methods. 


*See  Appendix. 


CHAPTER    X. 

CONVOCATION  OF  37tH  CONGRESS. — CONDITION  OF  THE  TREASTJET 
IN  1861. — FISCAL  NECESSITIES  GROWING  OUT  OF  THE  RE- 
BELLION.  INCREASE    OF   IMPORT   DUTIES    AJSTD   IMPOSITION    OF 

DIRECT    TAXES. INTERNAL     TAXES     POSTPONED. — CONDITION 

OF   TREASURY     IN     1862. INTERNAL    TAXES    ON     SPIRITUOUS 

AND  MALT  LIQUORS,  AJSTD  ON  LICENSES  TO  DEALERS  DIS- 
CUSSED.— THE    TEMPERANCE     QUESTION    DISCUSSED     IN     BOTH 

HOUSES    OF    CONGRESS. DISCRIMINATION    LN    FAVOR    OF    MALT 

LIQUORS   advocated;    SCIENTIFIC    TESTIMONY   IN    SUPPORT   OF 

SUCH    ADVOCACY. THE    STATUS    OF   THE    PROHIBITION   STATES 

AND  OF  THEIR  CONGRESSIONAL  REPRESENTATIVES. — INCON- 
SISTENCY OF  ADVOCATES  OF  PROHEBITION ;  THE  FUTILITY  OF 
THEIR  SCHEMES  DEMONSTRATED  BY  THEIR  OWN  STATEMENTS. 
DIFFERENCES  AS  TO  RATES  OF  TAX  ON  DISTILLED  SPIRITS, 
AND   AS    TO    THE    EXPEDIENCY    OF     TAXING    STOCK    ON    HAND. 

EVASION     OF     TAX     BY     DISTILLERS     PREDICTED. TEXT     OF 

REVENUE  LAW  IN  RELATION  TO  INTOXICANTS. — INCREASE 
OF    IMPORT    DUTIES    LN    1862. — INCREASE    OF    INTERNAL   TAX 

ON    SPIRITS   IN    1864. SPECULATION   AND    FRAUD    COMBINING 

TO    FRUSTRATE  OBJECTS  OF   LAW. APPOINTMENT    OF    SPECIAL 

REVENUE  COMMISSION  IN  1865  :  THEIR  REPORT  AND  RE- 
COMMENDATIONS.— MODIFICATION    OF   LAW   IN    1868. 

When  Lincoln  convoked  the  thirty-seventh  Congress,*  se- 
cession was  an  accomphshed  fact,  the  commandant  of  Fort 
Sumter  had  been  compelled  to  capitulate,  the  Southern  coast 
defenses  and  arsenals  were  in  the  hands  of  the  enemy,  and  a 
Confederate  army  stood  in  the  field,  eager  to  meet  the  seventy- 
five  thousand  Union  soldiers  who  had  responded  to  their  coun- 
try's call.  Of  patriotism,  of  martial  spirit,  of  strong  arms 
there  was  no  lack  on  the  Union  side ;  but  the  Treasury  was 


*  The  special  session  was  begun  on  the  4th  of  July,  1861,  and  ended  on 
the  6th  of  August. 


CHAPTER    X.  199 

practically  empt3^  Chase's  report  of  the  4th  of  July,  1861, 
showed  that  the  receipts  from  June  30th,  ISGO,  to  June  30tli, 
1861,  amounted  to  $86,972,893— including  $l:6,061-,082  from 
loans  and  Treasury  notes,  and  that  the  aggregate  of  expendi- 
tures was  $84,577,258.  For  the  succeeding  year  the  expendi- 
tures were  estimated  at  $318,519,581.  Loans,  an  increase  of 
import  duties,  and  direct  and  internal  taxes  were  the  means 
proposed  by  the  Secretary  of  the  Treasury  to  supply  this  sum. 
The  Committee  of  Ways  and  Means,  acting  in  the  main  on  the 
Secretary's  propositions,  reported  a  revenue  bill,  including 
direct  taxes,  an  income  tax,  and  excises  upon  spirits,  fermented 
liquors,  and  a  number  of  other  articles.  After  much  discussion 
and  many  recommitments  of  the  bill,  a  law  was  finally  passed, 
and  approved  August  5th,  1861 ,  enlarging  the  customs  tariff,  in- 
creasing certain  import  duties,  laying  direct  taxes  on  lands  and 
houses,  and  a  tax  on  incomes.  Unable  to  agree  upon  a  system 
of  internal  taxation,  unless  information  could  be  obtained  as  to 
the  character  and  extent  of  the  various  objects  contemplated 
to  be  embraced  in  it,  Congress  postponed  this  revenue  meas- 
ure in  order  to  give  the  proper  committee  time  to  submit  a 
comprehensive  scheme.  The  import  duties  on  spirits  from 
grain  and  other  material  were  fixed  at  fifty  cents  per  gallon ; 
those  on  brandy,  $1.50  per  gallon  ;  the  duties  on  beer,  ale  and 
porter,  which,  by  the  Morrill  tariff,  had  been  fixed  at  twenty-five 
cents,  when  imported  in  bottles,  and  fifteen  cents  when  im- 
ported in  casks,  remained  unchanged ;  whereas  the  duties  on 
wines,  which,  by  the  Morrill  tariff,  had  been  increased  from 
thirty  to  forty  per  cent,  on  their  value,  were  now  raised  to 
fifty  per  cent. 

In  December  (1861)  Chase  reported  a  prospective  deficit 
for  the  year  1861-62,  of  $213,904,497,  this  being  the  ex- 
cess of  estimated  expenditures  over  receipts.  In  the  hope 
that  ''  the  war  may  he  brought  to  an  auspicious  termination 
before  midsummer''''  (1862),  the  Secretary  recommended  that 


200  LIQUOK   LAWS    OF   THE    UNITED    STATES. 

the  obtaining  of  loans  to  the  amount  of  two  Imndred  millions 
be  autborized;  tbat  certain  import  duties  be  increased  and  tbe 
amount  of  direct  taxes  levied  under  tbe  existing  law  be  raised. 
Had  this  hope  been  realized,  the  Committee  of  Ways  and 
Means  of  the  House  of  Representatives  might  not,  perhaps, 
have  been  called  on  to  present  the  system  of  internal  taxa- 
tion, with  the  preparing  of  which  it  had  been  entrusted  in 
the  extraordinary  session.  But,  instead  of  the  auspicious  ter- 
mination of  the  war,  the  next  year  brought  to  the  minds  of  all 
the  conviction,  that  the  struggle  would  be  carried  d  Poutrance, 
that  the  last  ditch  must  be  fought  for.  The  expenditures 
necessitated  by  the  war  continued  to  increase  at  an  enormous 
rate,  and  the  making  of  provisions  for  them  no  longer  permitted 
delay.  Considering  the  magnitude  and  complexity  of  the  sub- 
ject of  internal  taxation,  as  it  presents  itself  in  the  law  of  July 
1st,  1862,  the  Committee  of  Ways  and  Means  may  well  be 
said  to  have  consummated  their  task  with  great  skill.  Their 
report,  submitted  to  the  House  on  the  3rd  of  March,  1862,  was 
based  on  the  result  of  a  series  of  investigations  and  inquiries, 
which  at  that  time  seemed  to  preclude  serious  errors ;  un- 
fortunately, they  did  not. 

Manufacturers,  merchants  and  shippers,  economists  and 
moralists  seem  to  have  been  given  a  hearing  by  the  committee 
for  the  purpose  of  ascertaining  as  nearly  as  possible,  what  tax- 
burdens  the  various  trades  and  callings  could  bear.  In  refer- 
ence to  the  taxing  of  spirits  the  committee  appear  to  have 
been  a  little  perplexed  by  the  superabundance  of  advice,  legiti- 
mately offered  and  obstinately  obtruded  upon  them.  People 
of  prohibitory  proclivities  wished  to  have  the  manufacture 
taxed  to  death  ;  earnest,  but  moderate  temperance  advocates 
desired  to  restrict  it  by  taxation  ;  wealthy  distillers,  having 
either  a  large  stock  on  hand  or  the  means  rapidly  to  accumulate 
one.  insisted  on  an  exorlntant  tax,  because  they  already  specula- 
ted on  the  enormous  profits  they  would  realize  by  a  rise  of 


CHAPTER    X.  201 

prices — it  being  a  foregone  conclusion  with  tbem,  that  '*  stock 
on  hand  "  would  not  he  taxed  ;  the  owners  of  small  distilleries 
objected  to  an  excessively  high  rate  of  tax,  and  the  agricultur- 
ists again  sided  with  the  latter,  on  the  ground,  that  much  the 
largest  quantity  of  spirits  produced  in  the  country  was  from 
corn,  and  that  consequently  a  tax  tending  to  restrict  distillation 
would  be  detrimental  to  the  farming  interests.  Along  with 
all  these  divergent  views  came  the  question  of  giving  prefer- 
ence to  fermented  beverages  over  ardent  liquors.  In  what 
manner  these  conflicting  desires,  views  and  expectations  were 
treated,  may  be  seen  from  a  speech  in  wliich  Morrill,  who  was 
a  member  of  the  Ways  and  Means  Committee  and  acted  as 
their  spokesman,  explained  the  nature  of  the  bill.     He  said  : 

The  duties  proposed  by  tlie  present  bill  rest  heavily  on  spirits  and  malt 
liquors — being  about  one  hundred  per  cent,  on  raw  whiskey,  fifty  per  cent, 
on  rum,  and  twenty  five  per  cent,  on  ale  or  beer — but  far  below  the  point 
at  which  even  some  prominent  distillers  thought  they  might  be  safely  car- 
ried, and  yet  largely  above  the  point  indicated  by  the  majority  of  those  en- 
gaged in  the  business.  The  men  who  now  are  supposed  to  have  large 
stocks  on  hand,  and  those  who  would  destroy  the  traffic,  regardless  of  rev- 
enue, for  once  agree  in  the  propriety  of  an  exorbitant  tax.  Large  quantities 
of  alcohol  are  used  in  the  arts  and  manufactures,  and  will  pay  a  duty  in 
proportion  to  its  strength.  For  any  such  purpose  the  duty  proposed  on  the 
raw  article  is  as  high  as  it  will  bear.  Little  whiskey  is  sold  to  be  used  as 
a  beverage  until  it  Las  passed  through  some  process  of  rectification,  is  re- 
distilled, or  is  filtered  through  charcoal.  All  :5pirituous  liquors,  it  will  be 
seen,  which  are  subjected  to  this  hocus-pocus,  or  the  jargon  of  juniper, 
strychnine,  and  other  sugar-coated  pills,  are  again  assessed  to  the  extent  of 
twenty-five  cents  per  gallon,  making  in  all  forty  cents  per  gallon  on  a  large 
share  of  spirituous  beverages.  Surely  this  is  enough,  very  possibly  too 
much.  In  England  the  duty  on  spirits  is  ten  shillings  and  fivepence  ster- 
ling, or  about  $3.53  per  gallon.  It  is  manifest  that  at  present  no  such  duty 
could  be  collected  of  the  people  of  the  United  States.  Much  the  largest 
quantity  of  spirits  produced  in  this  country  is  from  corn,  and  many  per- 
sons engaged  in  the  business  apprehend,  that  we  shall  cut  them  up  by  the 
roots  with  a  duty  so  high  as  even  fifteen  cents  per  gallon,  and  that  great  in- 
jury will  result  to  farming  interests  thereby.  The  committee  were  satisfied 
these  fears  are  not  well  founded.  So  long  as  consumption  keeps  equal 
pace  with  production — as  in  the  case  of  all  manufactures — the  consumer 


202  LIQDOR    LAWS    OF   THE   TJNITED   STATES. 

must  pay  tlie  increased  cost  price.  The  consumption  will  not  be  seriously 
checked  ;  and,  if  it  could  be,  such  a  result  would  bring  upon  us  no  national 
disgrace.  Whisky  and  ram,  with  the  duty  added,  will  still  leave  it  possi- 
ble for  any  man  or  brute  to  get  drunk  in  our  laud  on  cheaper  terms  than  in 
any  other  that  I  know  of.  Persons  who  like  good  liquors  are  patriotic  on 
the  subject  of  taxation,  and  never  quarrel  about  the  price  of  the  article  ; 
and  those  who  swallow  that  which  is  said  to  be  "  sure  to  kill  at  forty  rods," 
will  have  it  at  any  hazard  of  life  or  purse. 

Although  the  representative  of  a  State,  in  which  a  prohibi- 
tory law  was  at  that  time  in  force,  Morrill  had  the  moral 
courage  to  admit — with  some  reserve,  it  is  true — the  correct- 
ness of  the  assertion,  that  malt  liquors  promote  temperate 
drinking  habits.  This  admission  must  be  looked  for  between 
the  lines,  as  the  saying  is,  but  it  is  there  for  all  that.  "  Ale 
and  beer,"  said  Morrill,  "  as  beverages  maybe  regarded  as  less 
unhealthful  tlian  spirits.  It  is  therefore  desirable  to  preserve 
the  relative  difference  in  the  value  of  the  quantities  usually 
disposed  of  at  retail,  so  as  not  to  give  any  new  advantages  to 
competing  liquors." 

Throughout  the  debate  in  the  House  on  the  taxes  intended 
to  be  imposed  upon  distilled  spirits  and  fermented  liquors,  the 
old  question  of  fostering  the  milder  beverages  in  preference 
to  ardent  spirits,  was  kept  prominently  in  the  foreground,  and 
the  issue  between  the  Prohibitionist  minority  and  the  majority 
of  rational  temperance  advocates  was  all  the  more  pointed  for 
the  reason,  that  Stevens,  of  Pennsylvania,  who  had  reported 
the  bill,  was  himself  a  brewer,  represented  a  beer-drinking 
constituency,  and  consequently  had  triple  cause  to  defend  the 
provisions  of  the  proposed  law,  so  far  as  they  tended  to  dis- 
criminate in  favor  of  fermented  liquors.  The  opposition  to  these 
was  neither  very  bitter  nor  very  formidable  ;  in  fact,  excepting 
the  promiscuous  onslaughts  of  some  of  the  most  zealous  mem- 
bers from  ISTew  England,  there  was  no  objection  at  all  to  such 
a  discrimination,  and  it  seemed  to  be  pretty  generally  acknowl- 
edged, that  what  was  regarded  in  all  civilized  countries  as  the 


CHAPTER   X. 


203 


only  possible  solution  of  a  much  vexed  question,  ought  to  hold 
good  ill  our  country.  This  was  true  to  such  an  extent,  that, 
through  the  solicitude  of  members,  lest  the  brewing  industry 
be  overburdened,  even  Stevens  was  frequently  forced  into  an 
attitude  of  seeming  hostility  to  his  constituents'  interests. 
Thus,  when  the  licensing  of  brewers  was  discussed,  Eolman, 
of  Indiana — who  was  under  the  erroneous  impression,  that  a 
tax  on  beer  of  one  dollar  per  barrel  would  amount  to  three 
cents  per  quart — spoke  against  the  laying  of  additional  burdens 
on  the  brewing  industry,  which  he  conceived  to  be  alike 
beneficial  and  necessary.     He  said : 

"This  tax  applies  to  all  kinds  of  beer— lager  beer,  strong  beer,  and 
every  kind  of  brewed  drink  of  that  nature.  This  has  become  an  article  of 
absolute  necessity  in  many  parts  of  the  country,  as  much  so  as  tea  and 
coffee.  Among  the  German  population  lager  beer  seems  to  have  become  an 
article  of  absolute  necessity.  In  my  own  county,  at  almost  every  point 
where  a  pure  spring  gushes  out  of  the  hills,  there  is  a  brewery." 

Many  other  members  spoke  in  a  similar  strain,  and  although 
Stevens  showed  them  that  their  objections  were  predicated  on  an 
erroneous  supposition,  they  nevertheless  insisted  on  a  reduction 
of  the  brewers'  license.  This  occurred  just  at  a  time  when  a 
sanitary  commission,  appointed  by  the  President  and  Secretary 
of  War,  to  examine  the  camps  of  the  Union  array  and  to  report 
upon  their  sanitary  condition,*  had  rendered  an  interesting 
report  which  testified  to  the  healthfulness  of  malt  liquors  in 
these  words : 

"  In  certain  regiments  containing  a  large  percentage  of  Germans,  lager 
beer  has  been  freely  used.  There  is  evidence  before  the  commission  tending 
to  show  that  its  use  (at  least  during  the  summer)  was  beneficial,  and  that 
disorders  of  the  bowels  were  less  frequent  in  companies  regularly  supplied 
with  it  in  moderation  than  in  other  companies  of  the  same  regiment. " 


*  This  commission  consisted  of  Rev.  H.  W.  Bellows,  Professor  A.  D. 
Bache,  George  T.  Strong,  Frederick  Lew  Olmsted,  Drs.  J.  S.  Newberry,  J. 
F.  Jenkins,  J.  H.  Douglas,  A.  J.  Bloor,  E.  B.  Elliott  and  John  Bowne. 


204  LIQUOR    LAWS    OF   THE    DI^ITED    STAiES. 

The  same  report  contained  a  comparative  statement  showing 
the  proportion  of  cases  of  sickness  among  the  troops  from 
the  various  States,  from  which  it  appeared  that  the  average 
number  of  men  constantly  sick  in  regiments,  one  thousand 
strong,  was  as  follows  :  New  York,  52 ;  Pennsylvania, 
57 ;  Massachusetts,  52  ;  Connecticut,  49 ;  Yermont,  88 ;  and 
Maine,  124.  With  telling  effect  these  facts  and  figures 
were  held  under  the  eyes  of  the  members  from  Prohibi- 
tion States.  In  the  main,  the  old  ideas,  ventilated  so  fre- 
quently and  thoroughly  in  nearly  every  Congress  since  the 
adoption  of  the  Constitution,  again  came  to  the  surface  when- 
ever the  matter  of  fermented  drinks  was  on  the  tapis ;  and 
in  nearly  every  instance  the  representatives  of  Maine  rendered 
a  vindication  of  these  ideas  necessary.  Rice,  of  that  State, 
for  instance,  in  opposing  a  motion  to  reduce  the  tax  on  wine 
from  5  to  2  cents  per  gallon,  and  proposing,  instead  of  either,  a 
tax  of  sixteen  cents,  did  not  hesitate  to  class  wine  with  whiskey 
and  rum.  This  elicited  the  assertion  (by  Horton),  that  wine 
was  one  of  the  most  efficient  agents  of  carrying  out  the  idea 
of  the  Maine  law.  "  I  take  the  responsibility,"  retorted  this 
gentleman,  "  of  saying  that  it  has  a  greater  tendency  to  prevent 
the  excessive  use  of  ardent  spirits  than  any  agent  I  have 
known  to  be  appealed  to  for  the  last  ten  years.  The  moderate 
and  habitual  use  of  good  American  wine  produces  a  distate 
for  the  use  of  deleterious  ardent  spirits.  I  think,  therefore, 
that  all  those  gentlemen  who  believe  as  the  gentleman  from 
Maine  does,  that'  the  Maine  law  is  a  benefit  to  the  country, 
and  that  it  advances  civilization,  should  come  up  to  the  help  of 
the  Committee  of  Ways  and  Means  in  this  instance,  and  vote 
for  a  small  tax  on  native  wine  as  a  promotive  of  temperance." 

In  the  Senate  Sherman,  of  Ohio,  opposed  a  tax  on  wine 
made  of  domestic  grapes,  on  the  ground,  that  it  would  retard 
the  progress  of  grape-culture  in  his  State,  in  Missouri  and  in 
California,  where,  he  thought,  altogether  about  ten  thousand 


CHAPTER   X. 


205 


acres  were  then  being  cultivated  by  German  vintagers.  Grimes 
of  Iowa,  after  adverting  sarcastically  to  the  expunging  of  a  tax 
upon  "brandy  manufactured  out  of  whiskey  that  killed  at 
forty  rods,"  said  that  he  would  regard  it  as  "  the  greatest  boon 
that  could  be  conferred  upon  this  country  if  Congress  could 
so  stimulate  grape-culture  that  wine  would  be  as  common  a 
drink  as  cider  used  to  be  in  New  England  when  he  was  a  boy/' 
McDougal,  of  California,  reminded  his  colleague  of  the  Con- 
gressional tradition  on  the  subject  of  wine-culture  ;  and  empha- 
sized the  fact,  that  in  his  State  large  premiums  were  paid  for 
the  purpose  of  encouraging  the  production  of  wine : 

' '  The  enterprise  is  in  its  infancy.  It  operates  toward  both  material 
prosperity  and  national  morality  ;  and  such  is  the  opinion,  I  believe,  of  the 
entire  country.  It  has  been  considered  a  thing  that  States  should  favor  by 
legislation  and  by  bounty,  and  it  is  favored  by  particular  localities  in  the 
same  manner.  I  vsrill  ask  whether,  when  the  great  culture  and  production 
of  wine  was  started  about  Cincinnati,  it  was  not  regarded  as  a  great  feature 
of  American  *  enterprise,  and,  if  it  could  be  accomplished,  as  a  success  and 
a  great  thing  for  our  country.  Such  was  the  voice  of  the  nation,  and  so  it 
has  been  from  that  time  until  now." 

Sherman,  ordinarily  a  man  of  "  hard  sense"  rather  than  of 
sentiment,  indirectly  claimed  the  exemption  of  wine  from  in- 
ternal taxation  as  a  sort  of  mark  of  recognition  to  the  German- 
Americans,  who,  as  he  thought,  were  showing  themselves  very 
patriotic  in  the  war,  and  had  at  all  times  manifested  a  sincere 
solicitude  for  the  welfare  of  the  country.  This  usually  stern  law- 
maker disclosed  a  very  keen  appreciation  of  a  sentiment,  which 
to  this  day  prevails  among  the  German  population,  when  he 
said  that  in  cultivating  the  grape-vine,  the  vintners  "supposed 
they  were  contributing  to  the  public  weal."     Why  should  they 


*  Colonel  Longworth,  whose  ambition  it  was  said  to  have  been  to  malie 
the  Ohio  a  sort  of  American  Rhine,  induced  a  great  number  of  German 
vintners  to  settle  on  his  lands  and  to  cultivate  the  grape-vine,  offering  them 
unusually  favorable  terms.  Under  this  arrangement  the  industry  developed 
rapidly,  yielding  large  pecuniary  profits  and  an  excellent  wine. 


206  LIQUOR   LAWS    OF   THE   UNITED    STATES. 

not  have  supposed  so  ?  Every  child  then  knew  that  in  all  civil- 
ized countries,  where  ardent  spirits  were  used  to  excess,  the  aim 
of  law-makers  had  been  to  introduce  milder  stimulants  ;  that  as 
the  Swedish  Government  endeavored  to  compel  the  cultivation 
of  hops,  so  the  German  authorities  successfully  strove  to 
introduce  the  brewing  industry  into  the  North  of  Germany, 
and  the  English  Parliament  sought,  less  successfully,  to  correct 
the  errors  of  its  predecessors,  by  releasing  malt  liquoi-  from 
its  exorbitant  burdens.  And  in  America — what  was  the  whole 
temperance  agitation,  before  it  degenerated  into  a  Quixotic 
crusade  of  extremists,  but  an  effort  to  substitute  as  far  as  pos- 
sible and  rational,  beer  and  wine  for  whiskey  and  rum  ?  It  is 
worthy  of  note,  that  the  moral  arguments  advanced  in  favor 
of  wine  and  beer  were  not  assailed  in  the  Senate,  although 
Wilson,  of  Massachusetts,  and  Pomeroy  of  Kansas  ("  coming 
events  cast  their  shadows  before"),  jealously  watched  over  the 
interests  of  Prohibitionists,  availing  themselves  of  every 
opportunity  of  expounding  the  Maine  idea.  With  a  zeal  and 
an  energy  characteristic  of  him,  Wilson,  this  truly  patriotic  man 
and  gifted  legislator,  opposed  every  feature  of  the  tax  bill 
that  could  in  any  manner  be  construed  as  a  concession  to  the 
demon  of  inebriety  ',  he,  nevertheless,  allowed  it  to  be  under- 
stood— if  silence  in  such  a  case  may  be  said  to  imply  consent 
— that  he  approved  of  the  views  expressed  by  Sherman  and 
evidently  entertained  by  a  majority  of  both  Houses.  This  is 
nothing  to  be  wondered  at,  seeing  that  in  the  very  States,  whose 
prohibitory  laws  had  become  the  favorite  temperance  scheme 
of  Wilson,  the  question  of  exempting  fermented  liquors  was 
frequently  made  an  issue  between  the  friends  of  the  cause,  and 
quite  as  often  determined  affirmatively.  His  opposition  to  the 
liquor  traffic,  and  that  of  his  co-workers  in  the  House  and  Sen- 
ate generally,  might  have  been  more  effective,  if  it  had  been 
more  consistent  While  he,  and  a  few  others,  who  styled 
themselves  friends  of  temperance,  advocated  the  highest  rate 


CHAPTER   X. 


207 


of  taxes  on  the  manufacture  of  spirits,  thej  strenuously  ('pi)osed 
the  licensing  of  retailers  of  that  article,  and  in  the  endeavor  to 
carry  their  point,  they  unwittingly  revealed  the  futility  of  the 
prohibitory  laws  then  in  force.  In  truth,  they  tried  very  hard 
to  make  national  legislation  do  what,  according  to  their  own 
admission.  State  legislation  had  absolutely  failed  to  accom- 
plish. If  later  enquiries  had  not  yielded  an  abundance  of 
statistical  evidence  of  the  total  worthlessness  of  Prohibition, 
one  could  not  wish  for  better  proof  of  it  than  is  offered  in 
the  speeches  of  Wilson  and  others.  When  he  first  assailed 
the  section  relating  to  licenses,  Wilson  argued  that  the  retail 
traffic  would  be  lifted  ''  into  a  kind  of  respectability,"  which 
he  predicted  would  have  "  a  most  demoralizing  influence 
upon  the  country,"  and  particularly  of  course,  in  States  where 
prohibitory  laws  were  then  in  force.  It  is  well  to  state  the 
reasons  for  this  in  his  own  words  : 

"Sir,  in  some  States  we  have  laws  forbidding  the  retailing  of  ardent 
spirits,  but  in  spite  of  these  laws,  thousands  of  persons  are  retailing  spirits 
to  the  great  injury  of  the  community.  It  (the  license)  is  intended  to  go 
into  the  State  of  Massachusetts,  where  there  are,  in  spite  of  prohibitory 
laws,  several  thousand  rum  sellers. " 

Appealed  to  by  Wilson,  Foster,  of  Connecticut,  stated  that 
in  his  State  a  prohibitory  law,  much  more  stringent  than  that 
of  Massachusetts,  was  in  force,  but  could  not  be  executed. 
This  gave  Wilson  a  fresh  subject  for  lamentation,  and  he  now 
indulged  his  imaginative  faculty  in  the  best  style  of  our  later- 
day  Prohibitionists.  For  the  sake  of  a  few  thousand  dollars, 
he  said,  the  United  States  Government  would  give  licenses  to 
sell  an  article  by  which  "  more  Union  soldiers  have  been 
killed  than  by  the  balls  of  the  enemy."  When  asked  why  he 
gave  his  vote  to  tax  distilleries,  he  answered  that  he  did  so,  be- 
cause he  wished  to  kill  these  establishments  by  a  tax.  Sin- 
gularly enough,  all  his  ablest  opponents  hailed  from  Prohibition 
States.     Fessenden,  of   Maine,  for   example,  had   the  moral 


208  LIQUOR   LAWS    OF   THE   UNITED    STATES. 

courage  to  be  logical  in  this  matter,  claiming  tbat  it  was  no 
worse  to  license  the  retailer  than  to  tax  the  distiller,  that,  if  it 
was  immoral  to  pocket  the  "  wages  of  sin  "  from  one,  it  must  of 
necessity  be  immoral  to  take  the  money  of  the  other.  Anthony, 
of  Rhode  Island,*  said  : 

"  In  Maine  and  Massachusetts  where  no  licenses  are  granted,  the  busi- 
ness is  carried  on,  I  suppose,  quite  as  extensively— 1«  is  in  our  State— &s 
it  is  where  licenses  are  granted  ;  and  there  ougrht  to  be  some  mode 
provided  in  this  bill  whereby  men  who  sell  spirituous  liquors  contrary  to 
law  should  at  least  be  made  to  pay  to  the  general  Treasury  as  well  as  those 
who  sell  according  to  law." 

Foster,  of  Connecticut,  gave  a  brief  history  of  the  prohibi- 
"bitory  law  which  had  been  in  force  in  his  State  since  1852,  and 
in  doing  so,  he  not  only  acknowledged  that  the  legal  inhibition 
could  not  stop  the  stealthy  sale  of  spirits,  but  he  also  proved 
that  after  two  years  the  law  had  became  virtually  inoperative 
by  reason  of  a  strong  popular  sentiment  against  it.  His  re- 
marks left  nothing  to  be  desired  in  point  of  directness.  Thus 
he  said : 

"  In  all  large  towns  of  the  State,  and  many,  probably  most,  of  the 
small  ones,  liquor  is  now  sold  and  sold  very  generally,  in  utter  violation  of 
law.  Our  public  authorities  occasionally,  but  rarely,  institute  prosecutions, 
and  convictions  are  by  no  means  common.  Where  a  man  is  prosecuted,  he 
defends.  It  is  frequently  difficult  to  make  out  the  proof,  even  although 
the  place  may  be  notorious  as  one  where  liquor  is  sold,  and  men  sometimes 
escape  conviction  who  are  notoriously  guilty.  Public  feeling  has  become 
rather  indifferent  to  the  subject  of  prosecutions  and  they  are  generally 
discontinued." 

Hale,  of  New  Hampshire,  another  Prohibition  State,  was 
still  more  emphatic  in  his  utterances  ;  he  said : 

"  I  live  in  a  city  of  about  ten  thousand  inhabitants,  about  as  orderly  a 
city  as  there  is,  I  believe,  in  New  England  anywhere,  of  its  size,  as  law- 
abiding  a  people  ;  and  I  believe  to-day  there  never  were,  at  any  time,  and 
under  any  circumstances,  two-thirds  as  maiiy  places  where  liquor  is  openly  and 


*  Rhode  Island  had  her  second  prohibitory  law  up  to  1863. 


CHAPTER   X.  209 

haUtnally  and  ronslantly  soil,  week  days  and  Sundays,  as  it  is  under  the 
operation  of  our  entirely  prohibitory  law  ;  and  1  do  not  think  we  are  worse 
than  the  rest  of  mankind." 

These  specimens  will  suffice,  it  is  hoped,  to  corroborate  the 
assertion,  that  the  representatives  of  the  Prohibition  States 
were  unanimous  in  their  conviction,  that  the  prohibitory  laws 
they  had  helped  to  enact  did  not  stop  the  liquor  traffic  ;  never- 
theless, some  of  them  preferred  their  system  of  illicit,  illimit- 
able and  uncontrollable  traffic  to  a  method  by  which,  as  Wilson 
justly  remarked,  the  business  would  be  rendered  respectable, 
that  is  to  say.  placed  under  control  and  in  the  hands  of  re- 
sponsible citizens.  The  attitude  of  Wilson  in  this  question 
only  confirms  the  observation,  that  even  the  best  and  most 
talented  of  men  sometimes  succumb  to  the  infection  of  visionary 
schemes.  He  made  no  attempt  to  conceal  his  zealotism  on  the 
subject  ;  on  the  contrary,  he  openly  declared  that  he  preferred 
to  "  let  everybody  sell  that  chose  to  sell,  rather  than  to  have 
anybody  licensed  to  sell."  With  all  due  reverence  for  the 
manes  of  a  patriot  whose  memory  thousands  of  brave 
Union  veterans  cherish,*  it  must  be  said  that  such  utterances 
characterize  the  wildest  sort  of  fanaticism.  He  asserted  what 
he  did  not  and  could  not  know  ;  he  talked  of  facts  which 
never  existed ;  he  bnilt  up  a  structure  of  fantastic  arguments, 
which  the  slightest  inquiry  into  facts  completely  subverted. 
He  claimed  that  "  the  system  of  licenses  increased  drunkenness 
and  the  crimes  that  follow  drunkenness  " — yet,  in  1867,  when 
the  real  state  of  things  was  laid  bare  by  a  thorough  examina- 
tion, his  own  State  repudiated  these  views  as  totally  unfounded 
in  fact. 

In  view  of  the  mass  of  evidence,  adduced  by  representatives 
of  Prohibition  States,  against  the  expediency  of  tyrannical 
legislation,  there  is  no  cause  for  wonderment  that  the  Maine 

*  One  of  Wilson's  claiins  to  his  country's  gratitude  is  his  untiring  work 
in  the  Committee  on  Military  Affairs. 


210  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

idea  failed  to  have  any  effect  whatever  on  any  of  the  features 
of  the  revenue  law. 

Concerning  the  rate  of  tax  which  whiskey  was  supposed  to 
be  able  to  bear,  the  views  of  our  legislators  differed  widely. 
Some  members  of  Congress  advanced  the  opinion,  in  all 
seriousness,  that  a  tax  on  ardent  spirits,  however  exorbitant, 
would  be  collectable,  and  could  not  diminish  consumption ; 
while  others  seemed  to  think  that  taxing  the  article  at  the  rate 
of  one  hundred  per  cent,  on  its  value  would  be  almost  equiva- 
lent to  destroying  the  manufacture.  This  divergence  of 
opinions  subsequently  led  to  a  series  of  experiments  which 
incited  a  ruinous  spirit  of  speculation  and  invited  the  per- 
petration of  frauds  upon  the  Government.  At  the  time  when 
the  laying  of  the  first  tax  was  being  discussed  in  Congress, 
there  was  abundant  evidence  that  the  distillers  of  the  country 
already  speculated  on  the  increase  of  price,  which  must  inevit- 
ably follow  the  imposition  of  a  tax  on  the  article,  and  that  this 
speculation  was  based  on  the  supposition — which  proved  to  be 
correct — that  the  stock  on  hand  at  the  time  the  law  was  to  go 
into  effect  would  not  be  taxed.  Legislators  could  not  well 
plead  ignorance  of  this  scheme,  as  Sherman  and  others  re- 
peatedly called  attention  to  it,  and  sought  to  contravene  it  by 
inserting  in  the  bill  a  clause  imposing  a  tax  upon  stock  on 
hand.     Sherman  said : 

"  I  am  satisfied,  and  I  make  the  statement  now  witli  perfect  confidence, 
that  if  this  tax  is  made  twenty  or  twenty-five  cents,  or  even  fifteen  cents, 
it  will  stop  in  a  great  measure  the  manufacture  of  whiskey  for  at  least  six 
months,  for  a  very  simple  reason.  It  has  been  known  ever  since  last  July 
that  a  tax  would  be  put  on  whiskey,  and  all  distilleries  of  the  country  have 
been  running  to  their  extremest  capacity,  and  to-day  they  are  running  more 
than  they  have  done  liefore.  Every  old  still  in  the  country  has  been  set  at 
work,  simply  because  it  was  supposed  a  tax  would  be  put  on  wfiiskey,  andtJiat 
tJie  stock  on  hand  would  not  be  taxed." 

This  statement  of  fact,  made  at  so  early  a  stage  of  the 
development  of  our  gigantic  revenue  system,  should  be  borne 


i 


CHAPTER   X.  211 

in  mind,  as  it  is  of  great  importance  in  forming  a  just  opinion 
of  the  fluctuating  character  of  distillation  in  subsequent  years, 
under  repeated  changes  of  the  rate  of  tax. 

The  revenue  law,  as  finally  passed,  imposed  a  tax  of 
twenty  cents  per  gallon,  on  whiskey,  and  of  one  dollar  per 
barrel,  on  fermented  liquors.  According  to  the  schedule  of 
licenses,  which  included  nearly  every  trade  and  calling,  dis- 
tillers had  to  pay  $50  for  each  license,  annually ;  brewers,  $25 
and  $50,  according  to  the  quantity  of  beer  brewed  ;  wholesale 
dealers  in  all  kinds  of  liquors,  $100,  and  retail  dealers  in 
liquors,  $20.  The  full  text  of  that  part  of  the  law  which 
relates  to  spirits,  ale,  beer  and  porter  reads  as  follows  : 

SPIRITS,  ALE,  BEER  AND  PORTER. 

Sec.  39.  And  be  it  further  enacted.  That  it  shall  be  the  duty  of  the 
collectors,  within  the  respective  districts,  to  grant  licenses  for  distilling, 
which  licenses  shall  contain  the  date  thereof,  the  sum  paid,  and  the  time 
when  the  same  will  expire,  and  shall  be  granted  to  any  person,  being  a  res- 
ident of  the  United  States,  who  shall  desire  the  same,  by  application,  in 
writing,  to  such  collector,  upon  payment  of  the  sum  or  duty  pavable  by 
this  Act  upon  each  license  requested.  And  at  the  time  of  applying  for  said 
license,  and  before  the  same  is  issued,  the  person  so  applying  shall  give 
bond  to  the  United  States  in  such  sum  as  shall  be  required  by  the  collector, 
and  with  one  or  more  sureties,  to  be  approved  by  said  collector,  conditioned 
that  in  case  any  additional  still  or  stills,  or  other  implements  to  be  used  as 
aforesaid,  shall  be  erected  by  him,  his  agent  or  superintendent,  he  -will,  be- 
fore using,  or  causing  or  permitting  the  same  to  be  used,  report  in  writing 
to  the  said  collector  the  capacity  thereof,  an  information  from  time  to 
time  of  any  change  in  the  form,  capacity,  ownership,  agency  or  superin- 
tendence, which  all  or  either  of  the  said  stills  or  other  implements  may 
undergo  ;  and  that  he  will,  from  day  to  day,  enter,  or  cause  to  be  entered, 
in  a  book  to  be  kept  for  that  purpose,  the  number  of  gallons  of  spirits  that 
may  be  distilled  by  said  still  or  stills,  or  other  implements,  and  also  of  the 
quanties  of  grain  or  other  vegetable  productions,  or  other  substances  put 
into  the  mash-tub,  or  otherwise  used  by  him,  his  agent,  or  superintendent, 
for  the  purpose  of  producing  spirits,  which  said  book  shall  be  open  at  all 
times  during  the  day  (Sundays  excepted)  to  the  inspection  of  the  said  collec- 
tor, who  may  make  any  memorandums  or  transcripts  therefrom;  and  that  he 
will  render  to  the  said  collector,  on  the  first,  tenth,  and  twentieth  days  of 


212  LIQUOR    LAWS    OF    THE    UNITED   STATES. 

each  and  every  month,  or  within  five  days  thereafter,  during  tha  continu- 
ance of  said  license,  an  exact  account,  in  writing  taken  from  his  books,  of 
the  number  of  gallons  of  spirits  distilled  and  sold,  or  removed  for  consump- 
tion or  sale,  by  him,  his  agent,  or  superintendent,  and  the  proof  thereof, 
and  also  of  the  quantities  of  grain  and  other  vegetable  productions,  or 
other  substances,  put  into  the  mash-tub,  or  otherwise  used  by  him,  his 
agent  or  superintendent,  for  the  purpose  of  producing  spirits,  for  the  period 
or  fractional  part  of  a  month  then  next  preceding  the  date  of  said  report, 
which  said  report  shall  be  verified  by  affidavit  in  the  manner  prescribed  by 
this  Act ;  and  that  he  will  not  sell  or  permit  to  be  sold,  or  removed  for  con- 
sumption or  sale,  any  spirits  distilled  by  hun  under  and  by  virtue  of  his 
said  license,  until  the  same  shall  have  been  inspected,  gauged  and  proved, 
and  the  quantity  thereof  duly  entered  upon  his  books  as  aforesaid  ;  and 
that  he  will,  at  the  time  of  rendering  said  account,  pay  to  the  said  collector 
the  duties  which  by  this  Act  are  imposed  on  the  spirits  so  distilled  ; 
and  the  said  bond  may  be  renewed  or  changed,  from  time  to  time,  in 
regard  to  the  amount  and  sureties  thereof,  according  to  the  discretion  of  the 
collector. 

Sec.  40.  And  be  itfurtJier  enacted.  That  the  application  in  writing  made 
by  any  person  for  a  license  for  distilling,  as  aforesaid,  shall  state  the  place 
of  distilling,  the  number  and  capacity  of  the  still  or  stills,  boiler  or  boilers, 
and  the  name  of  the  person,  firm,  company,  or  corporation  using  the  same  ; 
and  any  person  making  a  false  statement  in  either  of  the  said  particulars  shall 
forfeit  and  pay  the  sum  of  one  hundred  dollars,  to  be  recovered  with  costs  of 
suit. 

Sec.  41.  And  he  it  further  enacted,  That  in  addition  to  the  duties  payable 
for  licenses  herein  provided,  there  shall  be  paid,  on  all  spirits  that  may  be 
distilled  and  sold,  or  removed  for  consumption  or  sale,  of  first  proof,  on 
and  after  the  Ist  day  of  August,  eighteen  hundred  and  sixty-two,  the  duty 
of  twenty  cents  on  each  and  every  gallon,  which  shall  be  paid  by  the  owner, 
agent,  or  superintendent  of  the  still  or  other  vessel  in  which  the  said  spirit- 
uous liquors  shall  have  been  distilled;  which  duty  shall  be  paid  at  the  time 
of  rendering  the  accounts  of  spirituous  liquors  so  chargeable  with  duty,  re- 
quired to  be  rendered  by  this  act:  Provided,  That  the  duty  on  spirituous 
liquors  and  all  other  spirituous  beverages  enumerated  in  this  Act  shall  be 
collected  at  no  lower  rate  than  the  basis  of  first  proof,  and  shall  be  increased 
in  proportion  for  any  greater  strength  than  the  strength  of  proof. 

Sec.  42.  And  be  it  further  enacted.  That  the  term  first  proof  used  in  this 
Act  and  in  section  six  of  the  Act  of  March  second,  eighteen  hundred  and  six- 
ty-one, entitled  "  an  Act  to  provide  for  the  payment  of  outstanding  treasury 
notes,  to  authorize  a'loan,  to  regulate  and   fix  the  duties  on  imports,  and  for 


CHAPTER   X.  213 

otlier  purposes,"  shall  be  construed,  and  is  hereby  declared  to  mean,  that 
proof  of  a  liquor  wbich  corresponds  to  fifty  degrees  of  Tralles'  centesimal 
hydrometer,  adopted  by  regulation  of  the  Treasury  Department,  of  August 
twelfth,  eighteen  hundred  and  fifty,  at  the  temperature  of  sixty  degrees  of 
Fahrenheit's  thermometer ;  and  that  in  reducing  the  temperatures  to  the 
standard  of  sixty,  and  in  levying  duties  on  liquors  above  and  below  proof, 
the  table  of  commercial  values,  contained  in  the  manual  for  inspectors  of 
spirits,  prepared  by  Professor  McCuUoch,  under  the  superintendence  of  Pro- 
fessor Bache,  and  adopted  by  the  Treasury  Department,  shall  be  used  and 
taken  as  giving  the  proportions  of  absolute  alcohol  iu  the  liquids  gauged 
and  proved  according  to  which  duties  shall  be  levied. 

Sec.  43.  And  be  it  further  enacted,  That  there  shall  be  designated  by 
the  collector  in  every  assessment  district  where  the  same  may  be  necessary 
one  or  more  inspectors,  who  shall  take  an  oath  faithfully  to  perform  their 
duties  in  such  form  as  the  Commissioner  of  Internal  Revenue  shall  prescribe, 
and  who  shall  be  entitled  to  receive  such  fees  as  may  be  fixed  and  prescribed 
by  said  Commissioner.  And  all  spirits  distilled  as  aforesaid  by  any  person 
licensed  as  aforesaid  shall,  before  the  same  is  used,  or  removed  for  consump- 
tion or  sale,  be  inspected,  gauged,  and  proved  by  some  person  so  as  aforesaid 
designated  for  the  performance  of  such  duties,  and  who  shall  mark  upon 
the  cask  or  other  package  containing  such  spirits,  in  a  manner  to  be  pre- 
scribed by  said  commissioner,  the  quantity  and  proof  of  the  contents  of  such 
cask  or  package,  with  the  date  of  inspection  and  the  name  of  the  inspector. 
And  any  person  who  shall  attempt  fraudulently  to  evade  the  payment  of  du- 
ties upon  any  spirits  distilled  as  aforesaid,  by  changing  in  any  manner  the 
mark  upon  any  such  cask  or  package,  shall  forfeit  the  sum  of  five  hundred 
dollars  for  each  cask  or  package  so  altered  or  changed,  to  be  recovered  as 
hereinbefore  provided.  And  the  fees  of  such  inspector  shall  in  all  cases  be 
paid  by  the  owner  of  the  spirits  so  inspected,  gauged  and  proved.  And  any 
such  inspector  who  shall  knowingly  put  upon  any  such  cask  or  package  any 
false  or  fraudulent  mark  shall  be  liable  to  the  same  penalty  hereinbefore 
provided  for  each  cask  or  package  so  fraudulently  marked.  And  any  person 
who  shall  use  any  cask  or  package  so  marked,  for  the  purpose  of  selling, 
spirits  of  a  quality  different  from  that  so  inspected,  shall  be  subject  to  a  like 
penalty  for  each  cask  or  package  so  used. 

Sec.  44.  And  he  it  further  enacted,  That  the  owner  or  owners  of  any  dis- 
tillery may  erect,  at  his  or  their  own  expense,  a  warehouse  of  iron,  stone,  or 
brick,  with  metal  or  other  fire -proof  roof,  to  be  contiguous  to  such  distillery; 
and  such  warehouse,  when  approved  by  the  collector,  is  hereby  declared  a 
bonded  warehouse  of  the  United  States,  and  shall  be  used  only  for  storing 
distilled  spirits,  and  to  be  under  the  custody  of  the  collector  or  his  deputy. 


214  LIQTJOR   LAWS    OF   THE    r:NITED   STATES. 

And  the  duty  on  the  spirits  stored  in  such  warehouse  shall  be  paid  when  and 
as  it  is  sold  or  removed  from  such  warehouse  for  sale. 

Sec.  45.  And  he  it  further  enacted,  That  every  person  who,  on  the  first 
day  of  August,  eighteen  hundred  and  sixty -two,  shall  be  the  owner  of  any 
still,  boiler,  or  other  vessel,  used  or  intended  to  be  used  for  the  purpose  of 
distilling  spirituous  liquors,  as  hereinbefore  provided,  or  who  shall  have  such 
a  still,  boiler,  or  other  vessel  under  liis  superintendence,  either  as  agent  for 
the  owner  or  on  his  own  account,  and  every  person  who,  after  said  day,  shall 
use  or  intend  to  use  any  still,  boiler,  or  O-her  vessel,  as  aforesaid,  either  as 
owner,  agent,  or  otherwise,  shall  from  day  to  day  make  true  and  exact  entry, 
or  cause  to  be  entered,  in  a  book  to  be  kept  by  him  for  that  purpose,  the 
number  of  gallons  of  spirituous  liquors  distilled  by  him,  and  also  the  number 
of  gallons  sold,  or  removed  for  consumption  or  sale,  and  the  proof  thereof, 
which  book  shall  always  be  open  in  the  day  time,  Sundays  excepted,  for  the 
inspection  of  the  said  collector,  who  may  take  any  minutes,  memorandums, 
or  transcripts  thereof,  and  shall  render  to  said  collector,  on  the  first,  tenth 
and  twentieth  days  of  each  and  every  month  in  each  year,  or  within  five  days 
thereafter,  a  general  account  in  writing,  taking  from  his  books,  of  the  num- 
ber of  gallons  of  spirituous  liquors  distilled  and  sold,  or  removed  for  con- 
sumption or  sale,  and  the  proof  thereof,  for  the  period  or  fractional  part  of  a 
month  preceding  said  day,  or  for  such  portion  thereof  as  may  have  elapsed 
from  the  date  of  said  entry  and  report  to  the  said  day  which  shall  nest  ensue ; 
and  shall  also  keep  a  book  or  books,  in  a  form  to  be  prescribed  by  the  Com- 
missioner of  Internal  Revenue,  and  to  be  open  at  all  seasonable  hours  for  in- 
spection by  the  collector  and  assessor  of  the  district,  wherein  shall  be  entered,, 
from  day  to  day,  the  quantities  of  grain,  or  other  vegetable  productions,  or 
other  substances  put  into  the  mash-tub  by  him,  his  agent,  or  superintendent, 
for  the  purpose  of  producing  spirits ;  and  shall  verify,  or  cause  to  be  verified^ 
the  said  entries,  reports,  books,  and  general  accounts,  by  oath  or  affirmation, 
to  be  taken  before  the  collector  or  some  other  officer  authorized  by  the  laws 
of  the  State  to  administer  the  same  according  to  the  form  required  by  this 
act,  where  the  same  is  prescribed  ;  and  shall  also  pay  to  the  collector  the 
duties  which  by  this  act  ought  to  be  paid  on  the  spirituous  liquors  so  dis- 
tilled and  sold,  or  removed  for  consumption  or  sale,  and  in  said  accounts 
mentioned,  at  the  time  of  rendering  an  account  thereof. 

Sec.  46.  And  be  it  further  enacted,  That  the  collector  of  any  district  may 
grant  a  permit  to  the  owner  or  owners  of  any  distillery  within  his  district  to 
send  or  ship  any  spirits,  the  product  of  said  distillery,  after  the  quantity  and 
proof  thereof  shall  have  been  ascertained  by  inspection  according  to  the  pro- 
visions of  this  act,  to  any  place  without  said  district,  and  within  the  United 
States ;  and  in  such  case  the  bill  of  lading  or  receipt  (which  shall  be  in  such 


CHAPTER   X. 


215 


form  as  the  Commissioner  of  Internal  Revenue  may  direct)  of  the  same  shall 
be  taken  in  the  name  of  the  collector  of  the  district  in  which  the  distillery  is 
situate,  and  the  spirits  aforesaid  shall  be  consigned,  in  such  bill  of  lading  or 
receipt,  to  the  collector  of  the  district  in  which  the  place  is  situate,  whither 
the  spirits  is  sent  or  shipped,  and  the  amount  of  duties  upon  said  spirits  shall 
be  stated  in  the  receipt ;  and  upon  the  arrival  of  the  spirits,  and  upon  the  de- 
mand of  the  collector  aforesaid,  the  agent  of  the  distillery  (and  the  name  of 
the  agent,  for  the  convenience  of  the  collector,  shall  always  appear  in  the 
bill  of  lading  or  receipt)  shall  pay  the  duties  upon  the  said  spirits,  with  the 
expense  of  freight,  and  every  other  expense  which  has  accrued  thereupon; 
and  the  said  collector,  upon  the  payment  of  the  duties  aforesaid,  shall  deliver 
the  bill  of  lading  or  receipt  and  the  spirits  to  the  agent  of  the  said  distillery  ; 
and  if  the  duties  are  not  paid  as  aforesaid,  then  the  said  spirits  shall  be  stored 
at  the  risk  and  cost  of  the  owner  or  agent  thereof,  who  shall  pay  an  addition 
of  ten  per  centum  thereupon  ;  and  all  the  general  provisions  of  this  act  in 
reference  to  liens,  penalties,  and  forfeitures,  as  also  in  reference  to  the  col- 
lection, shall  apply  thereto,  and  be  enforced  by  the  collector  of  the  district 
in  which  the  spirits  may  be :  Provided,  That  no  permit  shall  be  granted, 
under  this  section,  for  a  quantity  less  than  fifty  barrels :  And  provided  fur- 
ther, That  the  Commissioner  of  Internal  Revenue,  under  the  direction  of  the 
Secretary  of  the  Treasury,  may  make  such  further  regulations,  and  require 
such  further  securities,  as  he  may  deem  proper  in  order  to  protect  the  revenues 
and  to  carry  out  the  spirit  and  intent  of  this  section. 

Sec.  47.  And  be  it  further  enacted.  That  distilled  spirits  may  be  removed 
from  the  place  of  manufacture  for  the  purpose  of  being  exported,  or  for  the 
purpose  of  being  redistilled  for  export,  and  refined  coal  oil  may  be  removed 
for  the  purpose  of  being  exported,  after  the  quantity  of  spirits  or  oil  so  re- 
moved shall  have  been  ascertained  by  inspection,  according  to  the  provisions 
of  this  act,  upon  and  with  the  written  permission  of  the  collector  or  deputy 
collector  of  the  district,  without  payment  of  the  duties  thereon  previous  to 
such  removal,  the  owner  thereof  having  first  given  bond  to  the  United 
States,  with  sufficient  sureties,  in  the  manner  and  form  and  under  regulation, 
prescribed  by  the  Commissioner  of  Internal  Revenue,  and  in  at  least  double 
the  amount  of  said  duties,  to  export  the  said  spirits  or  oil  or  pay  the  duties 
thereon  within  such  time  as  may  be  prescribed  by  the  commissioner,  which 
time  shall  be  slated  in  said  bond  :  Provided,  That  any  person  desiring  to  give 
such  bond  shall  first  make  oath,  before  the  collector  or  deputy  collector  to 
whom  he  may  apply  for  a  permit  to  remove  any  such  spirits  or  oil,  in  manner 
and  fortn  to  be  prescribed  by  said  commissioner,  that  he  intends  to  export 
such  liquors  or  oil,  and  that  he  desires  to  obtain  said  permit  for  no  other  pur- 
pose whatever  :  and  any  collector  or  deputy  collector  is  hereby  authorized  to 
administer  such  oath  :  And  provided  further,  That  no  such  removal  shall  be 


216  LIQUOK    LAWS    OF    THE    UNITED    STATES. 

permitted  where  the  amount  of  duties  does  not  exceed  the  sum  of  three 
hundred  dollars,  nor  in  any  case  where  the  person  desiring  such  permission 
has  failed  to  perform  the  obligation  of  any  bond  previously  given  to  the 
United  States  for  the  removal  of  any  such  articles,  until  the  same  shall  have 
been  fully  kept  and  performed.  And  the  collector  of  the  district  in  which 
any  such  bond  may  be  given  is  authorized  to  cancel  said  bond  on  payment 
of  said  duties,  with  interest  thereon,  at  a  rate  to  be  fixed  by  said  Oom 
missioner,  and  all  proper  charges,  if  said  liquors  or  oil  shall  not  have  been 
exported,  or  upon  satisfactory  proof  that  the  same  have  been  duly  exported 
as  aforesaid.  And  in  case  of  the  breach  of  the  obligation  of  any  such  bond, 
the  same  shall  be  forthwith  forwarded  by  the  collector  of  the  district  to  the 
Commissioner  of  Internal  Revenue,  to  be  by  him  placed  in  the  hands  of  the 
First  Comptroller  of  the  Treasury,  who  shall  cause  the  same  proceedmgs  to. 
be  taken  thereon,  for  the  purpose  of  collecting  the  duties,  interest,  and 
charges  aforesaid,  as  are  provided  in  this  act  in  case  of  a  delinquent  collector. 

Sec.  48.  And  be  it  furtJier  enacted.  That  the  entries  made  in  the  books 
of  the  distiller,  required  to  be  kept  in  the  foregoing  section,  shall,  on  the 
first,  tenth,  and  twentieth  days  of  each  and  every  month,  or  within  five  day* 
thereafter,  be  verified  by  oath  or  affirmation,  to  be  taken  as  aforesaid,  of  the 
person  or  persons  by  whom  such  entries  shall  have  been  made,  which  oath 
or  aflarmation  shall  be  certified  at  the  end  of  such  entries  by  une  collector 
or  oflBcer  administering  the  same,  and  shall  be,  in  substance,  as  follows  r 
"  I  do  swear  (or  affirm)  that  the  foregoing  entries  were  made  by  me  on  the 
respective  days  specified,  and  that  they  state,  according  to  the  best  of  my 
knowledge  and  belief,  the  whole  quantity  of  spirituous  liquors  distilled  and 

sold,  or  removed  for  consumption  or  sale,  at  the  distillery  owned  by , 

in  the  county  of ,  amoimting  to gallons,  according  to  proof  pre- 
scribed by  the  laws  of  the  United  States." 

Sec.  49.  And  be  it  further  enacted,  That  the  owner,  agent,  or  superin- 
tendent aforesaid,  shall,  in  case  the  original  entries  required  to  be  made  in 
his  books  by  this  act  shall  not  have  been  made  by  himself,  subjoin  to  the 
oath  or  affirmation  of  the  person  by  whom  they  were  made  the  following  oath 
or  affirmation,  to  be  taken  as  aforesaid  :  "  I  do  swear  (or  affirm)  that,  to  the 
best  of  my  knowledge  and  belief,  the  foregoing  entries  are  j  ust  and  true,  and 
that  I  have  taken  all  the  means  in  my  power  to  make  them  so. " 

Sec.  50.  And  be  it  further  enacted.  That  on  and  after  the  first  day  of 
August,  eighteen  hundred  and  sixty-two,  there  shall  be  paid  on  all  beer, 
lager  beer,  ale,  porter,  and  other  similar  fermented  liquors  by  whatever  name 
such  liquors  may  be  called,  a  duty  of  one  dollar  for  each  and  every  barrel 
containing  not  more  than  thirty-one  gallons,  and  at  a  like  rate  for  any  other 
quantity  or  for  fractional  parts  of  a  barrel,  which  shall  be  brewed  or  manu- 


CHAPTER   X.  217 

factored  and  sold  or  removed  for  consumption  or  sale  within  the  United  States 
or  the  Territories  thereof,  or  within  the  District  of  Columbia,  after  tliat  day  ; 
which  duty  shall  be  paid  by  the  owner,  agent,  or  superintendent  of  the 
brewery  or  premises  in  wliicli  sucli  fermented  liquors  shall  be  made,  and 
shall  be  paid  at  tlie  time  of  rendering  the  accounts  of  such  fermented  liquors 
so  chargeable  with  duty,  as  required  to  be  rendered  by  the  following  section 
of  this  act :  Provided,  That  fractional  parts  of  a  barrel  shall  be  halves,  quar- 
ters, eighths,  and  sixteenths,  and  any  fractional  part  containing  less  than  one- 
sixteenth  shall  be  accounted  one-sixteenth;  more  than  one  sixteenth  and  not 
more  than  one-eighth  shall  be  accounted  one-eighth  ;  more  than  one-eighth, 
and  not  more  than  one-quarter,  shall  be  accounted  one-quarter;  more  than  one- 
quarter,  and  not  more  than  one-half,  shall  be  accounted  one-half  ;  more  than 
one-half,  shall  be  accounted  one  barrel. 

Sec.  51.  And  he  it  further  enacted,  That  every  person  who,  on  said  first 
day  of  August,  eighteen  hundred  and  sixty-two,  shall  be  the  owner  or 
occupant  of  any  brewery  or  premises  used  or  intended  to  be  used  for  the  pur- 
pose of  brewing  or  making  such  fermented  liquors,  or  who  shall  have  such 
premises  under  his  control  or  superintendence,  as  agent  for  the  owner  or 
occupant,  or  shall  have  in  his  possession  or  custody  any  vessel  or  vessels 
intended  to  be  used  on  said  premises  in  the  manufacture  of  beer,  lager  beer, 
ale,  porter,  or  other  similar  fermented  liquors,  either  as  owner,  agent,  or 
otherwise,  shall  from  day  to  day,  enter  or  cause  to  be  entered  in  a  book  to  be 
kept  by  him  for  that  purpose,  and  which  shall  be  open  at  all  times,  except 
Sundays,  between  the  rising  and  setting  of  the  sun,  for  the  inspection  of  said 
collector,  who  may  take  any  minutes  or  memorandum  or  transcripts  thereof, 
the  quantities  of  grain,  or  other  vegetable  productions  or  other  substances, 
put  into  the  mash-tub,  or  otherwise  used  for  the  purpose  of  producing  beer, 
or  for  any  other  purpose,  and  the  quantity  or  number  of  barrels  and  frac- 
tional parts  of  barrels  of  fermented  liquors  made  and  sold,  or  removed  for 
consumption  or  sale,  keeping  separate  account  of  the  several  kinds  and  de- 
scriptions ;  and  shall  render  to  said  collector,  on  the  first  day  of  each  month 
in  each  year,  or  within  ten  days  thereafter,  a  general  account,  in  writing, 
taken  from  his  books,  of  the  qualities  of  grain,  or  other  vegetable  produc- 
tions or  other  substances,  put  into  the  mash-tub,  or  otherwise  used,  for  the 
purpose  of  producing  beer,  or  for  any  other  purpose,  and  the  quantity  or 
number  of  barrels  and  fractional  parts  of  barrels  of  each  kind  of  fermented 
liquors  made  and  sold,  or  removed  for  consumption  or  sale,  for  one  month 
preceding  said  day;  and  shall  verify  or  cause  to  be  verified  the  said  entries, 
reports,  books,  and  general  accounts,  on  oath  or  general  affirmation,  to  be 
taken  before  the  collector  or  some  officer  authorized  by  the  laws  of  the  State 
to  administer  the  same  according  to  the  form  required  by  this  Act  where 
the  same  is  prescribed  ;  and  shall  also  pay  to  the  said  collector  the  duties 


218  LIQUOR   LAWS    OF   THE    UNITED    STATES. 

which,  by  this  Act,  ought  to  be  paid  on  the  liquor  made  and  sold,  or  re- 
moved for  consumption  or  sale,  and  in  the  said  accounts  mentioned,  at  the 
time  of  rendering  the  account  thereof,  as  aforesaid.  But  where  the  manu- 
facturer of  any  beer,  lager  beer  or  ale,  manufactures  the  same  in  one  collec- 
tion district,  and  owns  or  hires  a  depot  or  warehouse  for  the  storage  and  sale 
of  such  beer,  lager  beer,  or  ale,  in  another  collection  district,  he  may,  instead 
of  paying  to  the  collector  of  the  district  where  the  same  was  manufactured 
the  duties  chargeable  thereon,  present  to  such  collector  or  his  deputy  an  in- 
voice of  the  quantity  or  number  of  barrels  about  to  be  removed  for  the  pur- 
pose of  storage  and  sale,  specifying  in  such  invoice,  with  reasonable  cer- 
tainty, the  depot  or  warehouse  in  which  he  intends  to  place  such  beer,  lager 
beer,  or  ale  ;  and  thereupon  such  collector  or  deputy  shall  indorse  on  such 
invoice  his  permission  for  such  removal,  and  shall  at  the  same  time  trans- 
mit to  the  collector  of  the  district  in  which  such  depot  or  warehouse  is  situ- 
ated a  duplicate  of  such  invoice  .  and  thereafter  the  manufacturer  of  the 
beer,  lager  beer,  or  aie  so  r«moved  shall  render  the  same  account,  and  pay 
the  same  duties,  and  be  subject  to  the  same  liabilities  and  penalties  as  if  the 
beer,  lager  beer,  or  ale  so  removed  had  been  manufactured  in  the  district. 
The  Commissioner  of  Internal  Revenue  may  prescribe  such  rules  as  he  may 
deem  necessary  for  the  purpose  of  carrying  the  provisions  of  this  section  into 
effect. 

Sec.  52.  And  be  it  further  enacted.  That  the  entries  made  in  the  books 
required  to  be  kept  by  the  foregoing  section  shall,  on  said  first  day  of  each 
and  every  month,  or  within  ten  days  thereafter,  be  verified  by  the  oath  or 
affirmation,  to  be  taken  as  aforesaid,  of  the  person  or  persons  by  whom  such 
entries  shall  have  been  made,  which  oath  or  affirmation  shall  be  certified  at 
the  end  of  such  entries  by  the  collector  or  officer  administering  the  same, 
and  shall  be,  in  substance,  as  follows  :  "  I  do  swear  (or  affirm)  that  the  fore- 
going entries  were  made  by  me  on  the  respective  days  specified,  and  that 
they  state,  according  to  the  best  of  my  knowledge  and  belief,  the  whole 
quantity  of  fermented  liquors  either  brewed  or  brewed  and  sold  at  the  brew- 
ery owned  by ,  in  the  county  of ,  amounting  to barrels." 

Sec.  53.  And  be  it  further  enacted,  That  the  owner,  agent,  or  super- 
intendent aforesaid  shall,  in  case  the  original  entries  required  to  be  made  in 
his  books  shall  not  have  been  made  by  himself,  subjoin  to  the  oath  or 
affirmation  the  following  oath  or  affirmation,  to  be  taken  as  aforesaid  :  "  I 
do  swear  (or  affirm)  that,  to  the  best  of  my  knowledge  and  belief,  the  fore- 
going entries  are  just  and  true,  and  that  I  have  taken  all  the  means  in  my 
power  to  make  them  so." 

Sec.  54.  And  be  it  further  enacted.  That  the  owner,  agent,  or  super- 
intendent of  any  vessel  or  vessels  used  in  making  fermented  liquors,  or  of  any 


CHAPTER  X.  219 

Still,  boiler,  or  otlier  vessel  used  in  the  distillation  of  spirits  on  wliicli  duty  is 
payable,  who  shall  neglect  or  refuse  to  make  true  and  exact  entry  and  re- 
port of  the  same,  or  to  do,  or  cause  to  be  done,  any  of  the  things  by  this  act 
required  to  be  done  as  aforesaid,  shall  forfeit  for  every  such  neglect  or  refusal 
all  the  liquors  and  spirits  made  by  or  for  him,  and  all  the  vessels  used  in 
making  the  same,  and  the  stills,  boilers,  and  other  vessels  used  in  distillation, 
together  with  the  smu  of  five  hundred  dollars,  to  be  recovered  with  costs  of 
suit ;  which  said  liquors  or  spirits,  with  the  vessels  containing  the  same, 
with  all  the  vessels  used  in  making  the  same,  may  be  seized  by  any  collector 
of  internal  duties,  and  held  by  him  until  a  decision  shall  be  had  thereon  ac- 
cording to  law  :  Provided,  That  such  seizure  be  made  within  thirty  days 
after  the  cause  for  the  same  may  have  occurred,  and  that  proceedings  to  en- 
force said  forfeiture  shall  have  been  commenced  by  such  collector  within 
twenty  days  of  the  seizure  thereof.  And  the  proceedings  to  enforce  said  for- 
feiture of  said  property  shall  be  in  the  nature  of  a  proceeding  in  rem,  in  the 
circuit  or  district  court  of  the  United  States  for  the  district  where  such  seizure 
is  made,  or  in  any  other  court  of  competent  jurisdiction. 

Sec.  55.  And  he  it  further  enacted,  That  in  all  cases  in  which  the  duties 
aforesaid,  payable  on  spirituous  liquors  distilled  and  sold,  or  removed  for 
consumption  or  sale,  or  beer,  lager  beer,  ale,  porter,  and  other  similar  fer, 
mented  liquors,  shall  not  be  paid  at  the  time  of  rendering  the  account  of  the 
same,  as  herein  required,  the  person  or  persons  chargeable  therewith  shall 
pay,  in  addition,  ten  per  centum  on  the  amount  thereof;  and,  until  such 
duties  with  such  addition  shall  be  paid,  they  shall  be  and  remain  a  lien  upon 
the  distillery  where  such  liquors  have  been  distilled,  or  the  brewery  where 
such  liquors  have  been  brewed,  and  upon  the  stills,  boilers,  vats,  and  all 
other  implements  thereto  belonging,  until  the  same  shall  have  been  paid  ; 
and  in  case  of  refusal  or  neglect  to  pay  said  duties,  with  the  addition,  within 
ten  days  after  the  same  shall  have  become  payable,  the  amount  thereof  may 
be  recovered  by  distraint  and  sale  of  the  goods,  chattels,  aud  efifects  of  the 
delinquent  ;  and,  in  case  of  such  distraint,  it  shall  be  the  duty  of  the  oflScer 
charged  with  the  collection  to  make,  or  cause  to  be  made,  an  account  of  the 
goods,  chattels,  or  efifects  which  may  be  distrained,  a  copy  of  which,  signed 
by  the  officer  making  such  distraint,  shall  be  left  with  the  owner  or  pos- 
sessor of  such  goods,  chattels,  or  eflTects,  at  his,  her,  or  their  dwelling,  with 
a  note  of  the  sum  demanded,  and  the  time  and  place  of  sale  ;  and  said  officer 
shall  forthwith  cause  a  notification  to  be  published  in  some  newspaper,  i  f  any 
there  be,  within  the  county,  and  publicly  posted  up  at  the  post  office  nearest 
to  the  residence  of  the  person  whose  property  shall  be  distrained,  or  at  the 
court-house  of  the  same  county,  if  not  more  than  ten  miles  distant,  which 
notice  shall  specify  the  articles  distrained,  and  the  time  and  place  proposed  for 
the  sale  thereof,  which  time  shall  not  be  less  than  ten  days  from  the  date  of 


220  LIQUOR    LAWS    OF   THE   UNITED   STATES. 

such  notification,  and  the  place  proposed  for  sale  not  more  than  five  miles  dis- 
tant from  the  place  of  making  such  distraint  :  Provided,  That  in  every  case 
of  distraint  for  the  payment  of  the  duties  aforesaid,  the  goods,  chattels,  of 
effects  so  distrained  may  and  shall  be  restored  to  the  owner  or  possessor  if, 
prior  to  the  sale  thereof,  payment  or  tender  thereof  shall  be  made  to  the 
proper  oflacer  charged  with  the  collection,  of  the  full  amount  demanded,  to 
gether  with  such  fee  for  levying  and  advertising,  and  such  sum  for  the 
necessary  and  reasonable  expenses  of  removing  and  keeping  the  goods, 
chattels,  and  effects  so  distrained  as  may  be  allowed  in  like  cases  by  the  laws 
or  practice  of  the  State  or  Territory  wherein  the  distraint  shall  have  been 
made  ;  but  in  case  of  non-payment  or  neglect  to  tender  as  aforesaid,  the  said 
oflScer  shall  proceed  to  sell  the  said  goods,  chattels,  and  effecis  at  public  auc- 
tion, after  due  notice  of  the  time  and  place  of  sale,  and  may  and  shall  retain 
from  the  proceeds  of  such  sale  the  amount  demandable  lor  the  use  of  the 
United  States,  with  the  said  necessary  and  reasonable  expenses  of  said  dis- 
traint and  sale,  as  aforesaid,  and  a  commission  of  five  per  centum  thereon  for 
his  own  use  ;  rendering  the  overplus,  if  any  there  be,  to  the  person  whose 
goods,  chattels,  and  effects  shall  have  been  distrained. 

Sec.  56.  And  he  it  further  enacted,  That  every  person  licensed  as  afore- 
said to  distill  spirituous  liquors,  or  licensed  as  a  brewer,  shall,  once  in  each 
month,  upon  the  request  of  the  assessor  or  assistant  assessor  for  the  district  in 
which  his  business  as  a  distiller  or  brewer  may  be  carried  on,  respectively, 
furnish  the  said  assessor  or  assistant  assessor  with  an  abstract  of  the  entries 
upon  his  books,  herein  provided  to  be  made,  showing  the  amount  of  spirit- 
uous liquor  distilled  and  sold,  or  removed  for  consumption  or  sale,  or  of  beer, 
lager  beer,  ale,  porter,  or  other  fermented  liquor  made  and  sold,  or  removed 
for  consumption  or  sale,  during  the  preceding  month,  respectively  ;  the  truth 
and  correctness  of  which  abstract  shall  be  verified  by  the  oath  of  the  party  so 
furnishing  the  same.  And  the  said  assessor  or  assistant  assessor  shall  have 
the  right  to  examine  the  books  of  such  person  for  the  purpose  of  ascertaining 
the  correctness  of  such  abstract.  And  for  any  neglect  to  furnish  such 
abstract  when  requested,  or  refusal  to  furnish  an  examination  of  the  books 
as  aforesaid,  the  person  so  neglecting  shall  forfeit  the  sum  of  five  hundred 
dollars. 

A  few  days  after  the  approval  of  tliis  law  (July  1st,  1862), 
the  import  duty  on  brandy  was  increased  by  twenty-five  cents 
per  gallon,  and  on  all  other  spirits,  fifty  cents  per  gallon.  The 
duties  on  malt  liquors  were  raised  from  fifteen  to  twenty  cents 
per  gallon,  when  imported  in  casks,  and  from  twenty-five  to 
thirty  cents,  when  imported  in  bottles.     By  the  act  of  March 


CHAPTER    X.  221 

3, 1863,  tlie  internal  tax  on  fermented  liquors  was  temporarily 
reduced  to  sixty  cents  per  barrel,  that  is  to  say,  the  tax  was  to 
be  at  this  rate  from  the  date  of  the  passage  of  that  act  to  April 
1,  1864,  after  which  date  the  original  tax  of  $1.00  per  barrel 
was  to  be  revived.  At  this  rate — it  may  be  stated  right  here 
— the  tax  upon  malt  liquors  remains  to  this  day. 

No  change  in  the  rate  of  the  internal  tax  on  distilled  spirits 
was  made  until  the  year  1864,  when  two  acts  were  passed,* 
one  rapidly  following  the  other,  successively  increasing  the 
excise  dut^^  to  60  cents,  $1.50  and  $2.  The  latter  was  to 
take  effect  on  the  1st  of  February,  1865,  but  this  provision 
was  subsequently  so  amended  as  to  make  the  rate  take  effect 
a  month  earlier.  It  is  worthy  of  note  that  after  the  date  men- 
tioned a  discrimination  in  the  rate  of  tax  was  made  in  favor 
of  brandy  distilled  from  grapes,  which  shortly  afterwards  was 
extended  so  as  to  include  spirits  distilled  from  apples  and 
peaches. 

Every  proposition  to  increase  the  tax  on  spirits  brought 
out  repetitions  of  Sherman's  assertion,  that  the  laws  would 
inevitably  be  made  the  basis  of  dangerous  speculation,  unless 
a  tax  be  imposed  upon  stock  on  hand.  Experience  had  even 
then  furnished  ample  proof  of  the  truth  of  this  statement,  and 
everything  seemed  to  combine,  to  impress  upon  the  minds  of 
members  of  Congress  the  necessity  of  profiting  by  the  lessons 
which  this  experience  offered.  If  the  effect  of  the  various 
laws,  beginning  with  that  of  July  1st,  1862,  be  examined — a 
task  rendered  very  easy  by  the  help  of  the  masterly  re- 
ports of  the  Special  Revenue  Commission,  of  which  D.  A. 
Wells  was  chairman — it  will  be  found  that  Sherman's  predic- 
tion was  more  than  verified.  In  the  fiscal  year  1862-63,  under 
the  tax  of  twenty  cents,  imposed  July  1st,  1862,  the  revenues 
accruing  from  this  source  amounted  to  but  $3,229,900.     Hence^ 


May  7tli  and  June  SOtli,  18G4. 


222  LIQUOK   LAWS  OF   THE  UIOTED   STATES. 

the  quantity  of  spirits  on  which  taxes  were  paid  during  that 
time  did  not  come  up  to  one-fifth  of  the  quantity  returned  by  the 
census  of  1860.  Did  so  low  a  tax  have  the  effect  of  restricting 
consumption  to  so  great  an  extent  ?  Surely  not.  The  consump- 
tion was  undoubtedly  diminished,  as  is  shown  by  the  official 
reports  of  the  revenue  commission,  but  not  to  an  extent  at 
all  approaching  the  ratio  above  indicated.  The  fact  is,  produc- 
tion had  ceased  to  that  extent,  for  the  simple  reason,  foretold 
by  Sherman,  that  long  before  the  passage  of  the  law — its 
enactment  being  then  an  almost  absolute  certainty — the  dis- 
tillers produced"  spirits  so  largely  in  excess  of  immediate  de- 
mand, that  during  the  time  in  question  there  was  no  need  of 
a  larger  production  than  the  one  stated  above.  The  tables  of 
internal  revenue  receipts,  reproduced  in  another  part  of  this 
book,  demonstrate  very  plainly  the  sudden  fluctuations  in  the 
manufacture  of  this  article,  which  cannot  be  explained  other- 
wise than  Sherman  had  done  in  the  second  session  of  the 
thirty-seventh  Congress. 

Anyone  acquainted  with  the  progress  of  the  war,  and  the 
condition  of  the  Treasury,  must  have  foreseen,  at  the  beginning 
of  the  fiscal  year  1863-64,  that  an  increase  of  taxes  would 
have  to  be  effected  ;  as  subsequent  disclosures  showed,  dis- 
tillers had  as  good  an  opportunity  of  knowing  what  Congress 
would  do  in  the  matter,  as  any  other  class  of  manufacturers, 
and  they  did  not  fail  to  improve  their  opportunities. 

As  soon  as  the  first  increase  in  the  rate  of  tax  had  become 
what  might  be  called  a  moral  certainty,  distillation  was  re- 
sumed with  so  much  energy,  that  before  the  new  law, 
imposing  a  tax  of  sixty  cents,  went  into  operation,  no  less  than 
56,863,59.5  gallons  of  spirits  were  manufactured  on  which  the 
old  tax  of  twent}'^  cents  was  paid.  Under  this  and  the  new 
tax — which  latter,  as  has  been  shown,  was  more  than  trebled 
within  five  months — the  aggregate  quantities  of  spirits  returned 
by  the  revenue  officials  amounted  to  85,295,393  gallons.     This 


CHAPTER   X.  22S 

effect  of  the  instability  of  the  rate  of  tax  could  have  been 
averted  from  the  beginning,  if  the  law-makers  had  acted  on 
Sherman's  suggestion,  but  it  seems  that  even  then  the  influence 
of  what  is  popularly  called  the  third  House  had  more  weight 
than  prudential  considerations.  The  Special  Revenue  Com- 
mission, appointed  in  1865,  made  this  statement  in  reference  to 
the  operation  of  the  law  :  * 

' '  The  immediate  effect  of  the  enactment  of  the  first  three  and  successive 
rates  of  duty  was  to  cause  an  almost  entire  suspension  of  the  business  of 
distilling,  which  was  resumed  again  with  great  activity  as  soon  as  an 
advance  in  the  rate  of  tax  in  each  instance  became  probable.  The  stock  of 
whiskey  and  high  wines  accumulated  in  the  country  under  this  course  of 
procedure  was  without  precedent,  and  Congress,  by  its  refusal  to  make  the 
advance  in  taxation,  in  any  instance  retroactive,  virtually  legislated  for  the 
benefit  of  the  distillers  and  speculators  rather  than  for  the  Treasury  and  the 
Government." 

This  was  not,  however,  the  worst  feature  of  the  law,  for  the 
Treasury  at  least  obtained  revenue  at  the  lower  rate  of  tax  on 
which  this  sort  of  speculation  was  based.  The  worst  feature  by 
far  was  the  facility  offered  for  an  entire  evasion  of  all  taxes. 
From  the  report  already  cited  it  appears,  that  the  matter  of 
inspecting  distilleries  and  spirits  was  frequently  left  entirely 
to  the  "  workmen  or  partners  in  the  distilleries  inspected." 
The  testimony  of  George  Parnell,  United  States  revenue 
agent,  was  very  pointed  in  this  respect.  He  made  the 
statement,  that  distillers  manufactured  and  fraudulentlv  sold, 
without  the  slightest  pretense  of  concealment,  spirits,  in  quan- 
tities ranging  from  20,000  to  80,000  gallons,  without  suspicion 
on  the  part  of  the  local  officers,  that  the  business  was  not  con- 
ducted in  all  respects  legally  and  honestly.  In  answer  to  the 
question  whether,  then,  these  frauds  were  due  to  the  neglect 
on  the  part  of  the  Government  officials,  he  literally  stated : 

"  There  never  has  been  any  oflScer  appointed  under  the  revenue  act, 
whose  special  duty  it  was  to  look  after  distilleries.     The  inspectors  are  paid 

*  House  Ex.  Doc.  No.  60,  Ist  Session,  39th  Congress,  p.  19. 


224  LIQUOR    LAWS    OF    THE    UNITED    STATES. 

in  the  shape  of  fees,  by  the  distillers.  The  fees  are  generally  very  small. 
In  most  cases  all  the  inspectors  ever  thought  of  doing  was,  to  go  and  inspect  the 
iiquors  when  the  distillers  sent  for  them." 

From  a  mass  of  evidence,  which  would  form  a  small 
volume,  the  conclusion  is  inevitable  that  the  law,  as  it  then 
stood,  would  not  have  enabled  the  Government  to  prevent 
fraud,  even  if  the  conduct  of  the  war  had  not  detracted 
attention  from  the  details  of  this  subject.  It  must  not  be  sup- 
posed that  frauds  upon  the  Government  were  committed  by 
distillers  only  ;  the  disposition  to  evade  the  tax  extended  to  all 
trades.  It  is  to  be  regretted  that  the  example  of  the  U.  S. 
Brewers'  Association,  which  was  organized  for  the  purpose  of 
protecting  both  the  interests  of  its  members  and  those  of  the 
Government,  found  few,  if  any,  imitators. 

The  appointment  of  the  special  revenue  commission — under 
authority  of  an  act  of  Congress,  approved  March  3rd,  1865 — 
and  the  subsequent  creation  of  the  office  of  Special  Com- 
missioner of  the  revenue,  in  1866,  signalized  the  beginning  of 
those  attempts  at  a  thorough  revenue  reform,  which  in  later 
years  brought  about  the  annihilation  of  a  combination  of 
speculators,  commonly  known  under  the  name  of  "  whiskey 
ring,"  and  placed  the  Government  in  a  position  to  prevent 
and  detect  revenue  frauds.  A  general  outline  of  the  modifica- 
tions of  the  law,  deemed  necessary  in  order  to  make  taxes  on 
spirits  and  fermented  liquors  more  easily  collectable  and  to 
prevent  frauds — is  found  in  the  following  extract  from  the 
report  of  the  Special  Revenue  Commission  of  January, 
1866:* 

"  Distilled  spirits. — Of  the  various  sources  of  revenue  in- 
cluded under  the  internal  revenue,  that  of  distilled  spirits  ranks 
first  in  importance.     The  amount  of  revenue  derived  from  this 


*  House  Ex.  Doc.  No.  34,  1st  Session,  39th  Congress. 


CHAPTER   X.  225 

source  for  the  several  fiscal  years  during  which  the  internal 
revenue  law  has  been  in  operation,  is  as  follows: 

1863 $3,229,990.79 

1864 \ 28,431,797.83 

1865 15,995,701.66 

During  the  fiscal  year  1863  the  tax  was  uniformly  twenty 
cents  per  gallon.  For  the  fiscal  year  1864  the  tax  was  twenty 
cents  until  March  7th,  after  which  it  was  sixty  cents.  From 
July  1st,  1864,  until  January  1st,  1865,  it  was  $1.50  per  gal- 
lon, and  afterwards  $2.  Of  the  receipts  from  excise  on  distilled 
spirits  in  the  year  1865,  $3,862,753,  or  nearly  one-fourth  of 
the  whole  amount,  was  from  spirits  previously  bonded,  and 
paying  the  former  rates  of  twenty  and  sixty  cents  per  gallon. 

The  average  taxable  production  of  distilled  spirits  per  year, 
from  September  1st,  1862,  to  June  30th,  1865,  as  returned  to 
the  department,  was  40.537,371  gallons. 

The  amount  of  distilled  spirits  produced  in  the  country 
during  the  year  1860  was  in  excess  of  ninety  millions  of  gal- 
lons. The  amount  at  present  required  to  meet  the  consumption 
of  the  country,  under  the  influence  of  the  high  rate  of  taxation 
imposed  upon  this  article,  is  estimated  by  the  commission  as 
from  forty-two  to  forty-five  millions  of  gallons  ;  and  with  the 
continuance  of  the  present  rate  of  excise  they  have  no  reason 
to  believe  that  this  amount  will,  for  some  years  to  come,  be 
either  largely  increased  or  diminished. 

Of  the  amount  at  present  required  to  supply  the  consump- 
tion of  the  country,  the  commission  estimate  that  probably 
about  39,000,000  gallons  are  required  for  drinking  purposes, 
leaving  from  3,000,000  to  6,000,000  gallons  for  industrial 
uses.  This  estimate  does  not  include  the  amount  of  spirits 
exported,  from  which  by  reason  of  the  drawback,  no  revenue 
pccrues.  The  largest  amount  ever  exported  in  any  one  year 
has  not,  according  to  the  ofiicial  returns,  exceeded  3,000,000 
gallons.  In  regard  to  the  rate  of  tax  to  be  imposed  upon 
spirituous  or  distilled  liquors,  the  commission  are  of  the  opinion 
that  the  present  rate  of  two  dollars  per  gallon  is  in  excess  of 
the  proper  revemie  standard,  and  that  a  reduction  will  be  for 
the  interests  botli  of  the  revenue  and  the  country.  They  accord- 
ingly recommend  that  the  rate  of  tax  on  distilled  spirits  be 


226  LIQtrOK    LAWS    OF   THE   UNITED   STATES. 

reduced  to  one  dollar  per  gallon.  {The  Commissioner  after- 
wards proposed  a  tax  of  50  cents  per  gallon.  With  this  rate  of 
duty,  and  with  the  consumption  for  industrial  purposes  (esti- 
naated  at  not  less  than  10,000,000  gaWons)  which  must  follow, 
the  commission  are  of  the  opinion  that,  making  all  allowances, 
an  average  annual  revenue  of  at  least  forty  millions  of  dollars, 
from  this  source  may  be  collected. 

But  whatever  may  be  the  rate  of  tax  agreed  upon  for  the 
future,  it  is  clearly  evident  that  a  far  more  stringent  and  effect- 
ive law  than  that  which  now  exists  is  needed,  if  any  fair  pro- 
portion of  the  amonnt  which  the  Government  has  a  right  to 
expect  from  this  source  is  to  be  collected,  and  protection  at  the 
same  time  extended  to  the  honest  distiller  as  against  the 
competition  of  his  illicit  competitor. 

The  commission,  therefore,  present,  in  connection  with 
their  special  report  upon  this  subject,  a  draught  of  a  new  law,, 
which  they  believe  will  be  effectual  for  the  prevention  of  fraud 
and  the  securing  of  the  revenue.  This  bill,  which  is  neces- 
sarily arbitrary  and  restrictive,  does  not,  in  some  of  its  essential 
features,  meet  the  approval  of  a  portion  of  the  distilling 
interest  of  the  country,  and  their  opposition  to  it  may  be  fairly 
expected. 

The  commission  have,  however,  given  a  great  amount  of 
time  to  the  investigation  of  this  subject,  and  have  availed 
themselves  of  the  judgment  of  the  most  experienced  revenue 
officials,  distillers  and  dealers,  from  various  sections  of  the 
country;  and  have  also  sought  to  acquaint  themselves  most 
thoroughly  with  the  manner  in  Avhich  this  subject  is  treated 
for  revenue  in  the  various  States  of  Europe. 

The  securing  of  a  large  revenue  from  distilled  spirits  in  the 
United  States  is  absolutely  necessary  to  insure  the  sucsessf  ul 
carrying  out  of  any  plan  for  simplifying  the  internal  revenue 
system,  and  relieving  the  general  industry  of  the  country  from 
a  burden  of  taxation  which  must  inevitably  result  in  disaster. 
No  industrial  interest  in  the  country  can  better  sustain  the 
burden  of  taxation  than  distilled  spirits.  The  precedents  of 
all  other  countries  are  uniformly  in  favor  of  taxing  spirits  to 
the  maximum  consistent  with  revenue  ;  and  while  any  relaxa- 
tion of  the  law,  on  the  other  hand,  does  not  benefit  the  con- 
sumer its   strinijent   enforcement   with   a   regulation   of  the 


CHAPTER   X.  227 

business  will  not  diminish  the  amount  which  appetite  or 
industrial  necessity  demands  for  consumption.  If  it  be  urged 
that  the  bill  as  reported  by  the  commission  is  too  restrictive 
and  arbitrary  in  its  character,  destructive  of  small  private  in- 
terests; and  as  imposiniy  large  additional  restrictions  and  ex- 
penses upon  all  engaged  in  the  business,  it  may  be  replied 
that  the  amount  of  good  which  must  inevitably  accrue  to  the 
whole  country  by  the  course  recommended — if  the  same  will 
insure  an  enforcement  of  the  law  and  the  collection  of  the 
revenue — is  sufficient  to  justify  a  disregard  of  the  interests 
of  a  comparatively  small  number  of  individuals.  The  com- 
mission, therefore,  express  the  hope  that  Congress  will  not 
too  readily  listen  to  the  appeals  of  those  who  are  more 
anxious  to  subserve  their  own  interests  than  the  interests  of 
the  country. 

Fermented  liquors. — The  next  source  of  revenue  to  which 
the  commission  ask  attention  is  that  derivable  from  fermented 
liquors,  which,  like  distilled  spirits,  are  capable  of  sustaining, 
without  injury  to  the  country,  a  heavy  taxation.  From  this 
source  the  following  revenues  have  accrued  for  the  fiscal  years 
1863,  1S64  and  1865; 

1863 $1,558,083.41 

1864 2,223,710.73 

1865 3,657,181.06 

From  September  1862,  to  March  3,  1863,  the  tax  was  one 
dollar  per  barrel — of  not  more  than  thirty-one  gallons  ;  from 
that  date  to  April  1,  1864,  sixty  cents ;  and  since  that  time, 
one  dollar.  The  number  of  barrels  upon  which  the  tax  was 
received,  as  nearly  as  can  be  ascertained,  was  1,765,827  in  1863 ; 
3,459,119  in  1864;  and  3,657,181  in  1865. 

By  the  census  of  1860  the  number  of  breweries  then  exist- 
ing in  the  United  States  was  returned  at  1,269,  affording  a 
product  of  nearly  four  million  barrels  (3,812,346.)  The  com- 
mission, after  a  careful  review  of  this  branch  of  industry,  and 
personal  consultation  with  nearly  every  leading  brewer  of 
both  ale  and  lager  beer  in  the  United  States,  are  of  the  opinion 
that  the  number  of  barrels  of  beer  produced  and  consumed  in 
the  country  during  the  fiscal  year  1865  was  nearly  or  quite 
6,000,000,  and  that  the  annual  increase  of  product  at  the  pres- 


228  LIQUOR    LAWS    OF   THE   UNITED    STATES. 

ent  time  is  about  ten  per  cent,  per  annum,  mainly  of  lager 
beer.  If  this  opinion  be  correct,  it  is  apparent  that  the 
Government  received  for  the  above  year  but  little  more  than 
sixty  per  cent,  of  its  just  dues  from  this  source. 

Upon  the  announcement  of  the  ajypointment  of  this  com- 
mission in  the  spring  of  1865^  the  National  Brewer i  Asso- 
ciation appointed  a  committee  of  three  of  their  onost prominent 
memhers,  to  visit  Europe,  and  examine^  carefully  and  in  de- 
tail, the  results  of  the  working  of  the  systems  of  taxation  in 
regard  to  ferm^ented  liquors  adopted  in  those  countries  of 
Europe,  where  the  demand  for  such  liquors  is  more  general 
and  extensive  than  in  the  United  States.  The  report  of  that 
committee,'^  comprising  a  great  amount  of  information  touch- 
ing this  industry,  now  so  rapidly  developing  itself  in  the 
United  States^  has,  hy  vote  of  the  Brewer^  Association,  been 
placed  in  the  hands  of  the  com.mission,  and  is  now  at  the  dis- 
posal of  Congress  for  publication  if  they  deetn  it  expedient. 
The  commission  believe  that  its  p>ublication  v^ould  be  of  great 
benefit  to  the  breioing  interest  of  the  country,  and,  indirectly, 
to  the  revenue  ',   and  they  therefm^e  recommend  it. 

As  the  present  rate  of  tax  imposed  upon  fermented  liquors, 
viz  :  one  dollar  per  barrel  of  thirty-one  gallons,  is  in  excess  of 
the  rate  imposed  by  any  of  the  States  of  Europe  (Austria  ex- 
cepted) ;  and  as  the  present  rate,  moreover,  in  the  opinion  of 
the  commission,  after  full  consideration,  is  believed  to  be  fully 
up  to  the  revenue  standard  ;  and  as  such  is  all  but  unanimously 
acquiesced  in  by  the  brewing  interest  of  the  country,  they 
would,  therefore,  recommend  that  the  existing  rate  be  neither 
increased  nor  diminished. 

The  determination  of  the  proper  mode  of  collecting  the  tax 
on  fermented  liquors,  and  preventing  the  large  amount  of 
fraud  which  has  heretofore,  undoul)tedly,  been  committed  in 
regard  to  the  same,  has  been  to  the  commission  a  subject  of  no 
little  difficulty.  By  reference  to  their  Special  Report,  (No  6.) 
it  will  be  seen  that  a  tax  on  malt  in  this  country  is  not  prac- 
ticable; neither  is  the  plan,  also  investigated  by  the  commis- 
sion, of  ganging  and  assessing  the  liquors,  either  in  the 
"coppers"  during  the  process  of  maimfacture.  or  subsequently, 


*  See  Proceedings  5th  U.  S.  Brewers'  Convention  ;  pp.  10-48. 


CHAPTER   X.  229 

while  in  the  fermenting  vats.  Abandoning  both  of  these 
methods,  therefore,  they  have,  with  the  full  concurrence  and 
assistance  of  the  leading  brewers  of  the  country,  devised  a  plan 
for  collecting  the  tax  by  means  of  a  stamp,  printed  on  insoluble 
parchment  paper,  to  be  affixed  to  each  barrel  sold  and  removed 
from  the  place  of  its  manufacture,  with  a  requirement  that 
the  same  be  cancelled  by  the  retailer  or  consumer 

Specimens  of  the  stamps  assigned  for  this  purpose  have 
been  prepared  for  submission  to  Congress,  while  the  full  de- 
tails of  the  plan  are  given  in  the  special  report  referred  to. 
With  the  adoption  of  this  system,  and  the  retention  of  the 
present  rate  of  excise,  the  commission  estimate  that  the 
Government  may  rely  upon  an  immediate  annual  revenue, 
from  fermented  liquors,  of  at  least  five  millions  of  dollars." 

Not  until  the  year  1868 — when,  under  the  tax  of  two  dollars 
per  gallon,  the  revenue  from  distilled  spirits  had  decreased  to  a 
figure  indicating  either  an  almost  entire  suspension  of  distilla- 
tion or  an  unprecedented  degree  of  fraudulent  transactions — was 
the  law  enacted  ^  which  Special  Commissioner  D.  A.  Wells 
liad  proposed.  The  system  of  collection,  supervision  and  con- 
trol then  introduced,  and  subsequently  perfected  in  many 
particulars,  is  practically  the  same  wiiich  is  in  operation  at 
this  day.  It  is  the  method  which  makes  the  internal  duty 
payable  by  means  of  stamps  to  be  affixed  to  the  packages  con- 
taining the  spirits  or  fermented  liquors,  and  which  surrounds 
the  manufacture  and  sale  of  these  articles  with  an  effective, 
though  by  no  means  oppressive,  guard  against  infractions  of 
the  law.  The  duty,  now  reduced  from  two  dollars  to  fifty 
■cents  per  gallon,  was  thought  to  be  low  enough  to  do  away 
with  the  temptation  to  defraud  the  Government  and  to  afford 
the  greatest  possible  guarantee  of  an  easy  collection  of  the 
whole,  or  nearly  the  whole  amount  of  taxes  due  to  the  Treasury. 
This  rate  was,  however,  again  changed  a  number  of  times  (as 
will  be  seen  from  the  tables  reproduced  in  the  next  chapter), 


Act  of  July  20,  1868. 


230  LIQUOR   LAWS    OF   THE    UNITED   STATES. 

but,  in  tlie  main,  not  in  such  a  manner  as  permanently  tO' 
defeat  the  objects  of  the  law. 

It  was  not  so  far,  and  is  not  now,  deemed  essential  to  enter 
into  the  details  of  the  system  of  drawbacks,  of  the  regulations 
relating  to  hydrometers  and  bonded  ware-houses,  although  in 
regard  to  the  latter  a  great  deal  might  be  said  concerning 
practices  on  the  part  of  distillers,  which  show  little  regard 
for  the  interests  of  the  Government. 

No  attempt  will  be  made  either  to  review  the  many  laws 
on  the  subject,  passed  since  1868,  or  to  narrate  the  history  of 
the  fraudulent  schemes — yet  fresh  in  the  memory  of  the 
reader — which  were  disclosed  and  punished,  and  whose  re-- 
currence  was  effectually  guarded  against  under  General  Grant's 
second  Administration.  For  present  purposes  it  is  sufficient 
to  know  the  exact  policy  of  the  Government,  or  rather  the 
spirit  of  the  laws  and  general  results ;  and  as  to  the  latter  point 
it  must  be  clear  to  everybody  that,  in  determining  the  legiti- 
mate  effects  of  internal  taxes  upon  the  manufacture  and  con- 
sumption of  fermented  liquors  and  distilled  spirits,  we  must 
pass  over  the  period  of  questionable  speculations,  of  frauds  and 
fluctuations,  and  take  into  consideration  only  the  period  during 
which  the  revenue  laws  were  generally  obeyed.  This  period 
embraces  at  least  eleven  years,  from  1874  to  the  present  day. 


CHAPTER  XL 

EPITOME  OF  THE  POLICY  OF  THE  GOVERNMENT  AND  THE  SPIRIT  OF 
THE  LAWS  SINCE  1860. PREJUDICE  AGAINST  EXCISES  COM- 
PLETELY WIPED  OUT,  80  FAR  AS  INTOXICANTS  ARE  CONCERNED. 

WILLINGNESS  OF  DISTILLERS  AND  BREWERS  TO  BE  TAXED. — 

FAITHFUL    ADHERENCE    TO    THE    POLICY    OF    FAVORING    MALT 

LIQUORS    FOR    MORAL    REASONS. UNIVERSAL    DESIRE,    FROM 

THE   BEGINNING    OF    OUR    GOVERNMENT   TO   PRESENT    DA.Y,  TO 

SUBSTITUTE  MALT  LIQUORS  FOR  ARDENT  SPIRITS. HAMILTON'S 

AIMS    REALIZED. THE    OPERATION     OF    THE    REVENUE    LAWS 

DURING  THE  FIRST  TEN  YEARS  OF  THEIR  EXISTENCE. EFFECT 

OF  SPECULATION  AND  FRAUDS. — MODIFICATIONS  OF  LAWS 
WITH    A   VIEW  TO  PREVENTION    OF   BOTH. — BRIEF   REVIEW   OF 

EXTERNAL  TAXATION  ON    INTOXICANTS  SINCE    1860. RESULTS 

OF    INTERNAL    TAXATION  SINCE    1874. MARVELOUS    GROWTH 

OF  BREWING  INDUSTRY,  CONSUMPTION  OF  ARDENT  SPIRITS 
DECREASED    BY     OVER     FIFTY    PER     CENT  ;     THE    OBJECTS    OP 

THE  TEMPERANCE  MOVEMENT  REALIZED. THE  PEOPLE  OF  THE 

UNITED  STATES  AMONG  THE  FIRST  OF  TEMPERATE  NATIONS  ; 
THEIR  PRESENT  POLICY  ADOPTED  BY  EUROPEAN  GOVERN- 
MENTS,    AND    SUSTAINED    BY     SCIENTIFIC     INVESTIGATIONS. 

WHAT  IS  NEEDED  TO  PERPETUATE  AND  MULTIPLY  THE  FRUITS 
OF  WISE  LAWS. REVENUE  TABLES. 

The  policy  of  the  Government  in  regard  to  the  internal 
taxing  of  ardent  liquors  is  to-day  precisely  what  it  was  when 
the  Revenue  Commission  formulated  it  in  these  words  :  ''  In 
respect  to  distilled  spirits,  the  commission,  taking  as  their 
guide  the  history  of  past  congressional  legislation,  and  what 
seems  to  be  the  general  public  sentiment  of  the  country, 
assume  in  the  outset,  that  it  is  to  be  the  future  policy  of  the 
Government  to  impose  upon  these  articles  the  maximum  tax 
which  they  can  bear,  without  too  largely  encouraging  attempts 
at  evasion  of  payment  by  the  smuggler,  the  illicit  distiller, 
and  the  retailer."     This  was  the  policy  of  the  Government 


232  LIQUOR   LAWS    OF   THE   UNITED    STATES. 

when  the  entire  system  of  internal  taxation,  as  created  bj  the^ 
law  of  July  1,  1862,  was  necessarily  resjarded  as  simply  a  war 
measure ;  it  remained  the  policy  when,  after  the  re-establish- 
ment of  peace,  the  gradual  reduction  and  final  abolishment  ot 
all  other  internal  taxes — those  upon  tobacco  excepted — was 
initiated  ;  and  it  is  the  policy  to-day  when  the  system  embraces 
but  one  other  article  besides  ardent  and  fermented  liquors. 
In  determining  the  maximum  tax,  conformably  to  the  sense 
of  the  foregoing  quotation,  that  is  to  say,  in  endeavoring  to 
fix  the  highest  collectable  excise  on  spirits,  Congress  erred  re- 
peatedly, and,  considering  the  imperfections  of  human  nature, 
it  will  surely  not  be  regarded  as  a  matter  of  surprise  that 
some  persons,  who  were  in  a  position  to  derive  pecuniary  ad- 
vantage from  such  legislative  errors,  did  not  hesitate  to  profit 
by  them.  Nor  is  it  to  be  wondered  at  that  frauds  became  the' 
rule,  when  the  tax  on  spirits  rose  to  a  sum  amounting  to  1,000 
per  cent,  on  the  prime  cost  of  the  article. 

When  the  proper  level  was  found  for  the  tax,  and  when 
Congress  ceased  directly  or  indirectly  to  aid  the  nefarious 
schemes  of  greedy  speculators,  we  find  on  the  part  of  all,, 
or  very  nearly  all,  distillers  a  cheerful  compliance  with  the 
law  or,  in  other  words,  an  unreserved  endorsement  of  the 
policy  of  the  Government.  No  objection  was  ever  urged 
by  them  against  the  principle  of  excises  in  their  particular 
case.  They  undoubtedly  knew  of  the  prejudice  against 
this  system  of  taxation  and  were  aware  of  the  role  it 
played  in  the  political  and  economic  history  of  the  country  ; 
but  they  did  not  themselves  entertain  it,  and  flir  from 
endeavoring  to  profit  by  whatever  force  this  prejudice  may 
have  possessed  in  their  time,  or  may  still  possess,  they  have, 
on  the  contrary,  signified  their  preference  for  a  retention  of 
the  tax.  Public  sentiment  certainly  sustains  them  in  this. 
When  the  final  abolishment  of  internal  taxes  on  all  other 
articles  and  trades  had  become  inevitable,  by  reason  of  a  super- 


CHAPTER    XI. 


233 


abundance  of  revenue,  no  serious  effort  was  made  to  reduce  the 
excise  on  spirits  below  the  rate  which  experience  had  demon- 
strated to  be  the  maximum  collectable  tax ;  and  whenever  such 
a  reduction  was  proposed,  it  invariably  emanated  from  quarters 
which  left  it  doubtful,  whether  repugnance  to  an  excise  or  the 
desire  to  retain  the  protective  system  of  taxation  prompted  tlie 
proposition.     At  all  events  it  can   safely  be   asserted— proof 
being  easily  accessible— that  those  who  have  to  bear  the  tax 
in  question  and  all  the  inconveniences  that  are  said  to  grow  out 
of  its  alleged  obnoxious  features,  are  perfectly  satisfied  with 
their  present  status,  and  that  whatever  commiseration  may  be 
felt  for  them  by  those  theorists,  who  regard  excises  as  tyran- 
ical,  is  just   so  much   sympathy   wasted.      Any   party  now 
wishing  to  make  a  political  issue  of  this  question,  would  have 
to  build  up  a  new  foundation  for  it,  for,  excepting  the  dissat- 
isfaction still  expressed  sometimes  on  account  of  the  number  of 
officers  required  by  a  system  of  excises,  there  would  not  even 
be  a  shadow  of  reasonableness  in  recurring  to  the  objections  of 
old.     The  subject  of  an  excise  on  spirits  in  its  relation  to  the 
condition  of  the  Treasury  may,  of  course,  be  made  an  issue ; 
in  that  case,  however,  the  question  would  not  be,  whether  the 
tax  "infringes  upon   inalienable   rights,"   but,  whether   the 
copious  flow  of  revenues  shall  be  stayed  at  the  expense  of  Pro- 
tection or  at  the  expense  both  of  an  economic  principle  and  of 
a  moral  idea,  viz  :  the  principle  of  imposing  the  heaviest  tax- 
burden  upon  an  article  of  luxury  best  able  to  bear  it,  and  the 
moral  idea  of  diminishing  the  use  of  ardent  spirits  by  means 
of  a  tax.     The  willingness  to  bear  internal  taxes  is  not  confined 
to  distillers,  the  manufacturers  of  fermented  beverages  being 
no  less  disposed  to  contribute  their  share.    In  fact,  as  we  have 
seen,  the  brewers  went  so  far  as  to  suggest  to  the  Govern- 
ment the  most  practicable  and  profitable  method  of  collecting 
taxes  on  malt  liquors,  and  of  avoiding  evasions  of  tax  pay- 
ments.    They  fully  appreciate  the  fact,  that  a  system  of  taxation 


234:  LIQUOK   LAWS   OF   THE   UNITED    STATES. 

which  properly  discriminates  between  fermented  and  distilled 
liquors,  must  greatly  benefit  their  industry. 

So  far  as  fermented  liquors  are  concerned,  the  spirit  of  the 
laws  enacted  since  the  outbreak  of  the  civil  war,  indicates  no 
departure  from  the  policy  enunciated  by  Hamilton,  and  acted 
upon  by  nearly  every  Congress  since  the  adoption  of  the  Con- 
stitution. It  is  the  policy  of  favormg  and  furthering  grape- 
culture  and  the  manufacture  of  malt  liquors,  with  the  aim  of 
substituting  the  products  of  the  vineyard  and  the  brewery 
for  ardent  spirits.  The  Congressional  speeches  quoted  in  the 
preceding  chapter  show  very  plainly  that  the  great  diiference 
between  the  tax  on  spirits  and  that  on  malt  liquors  was 
universally  regarded  as  a  means  by  which  temperate  drinking 
habits  could  be  produced  ;  and  in  their  report  of  January, 
1866,  the  Eevenue  Commission  reiterated  this  policy,  when  they 
endorsed  the  statement,  that  the  oljject  of  a  true  temperance 
agitation  must  be  the  substitution  of  mild  beverages  for  ardent 
drinks.  There  was  sufficient  evidence  even  then  that,  under 
normal  conditions,  such  an  object  could  be  attained  by  a  reason- 
able excise  system. 

It  was  observed  that  the  consumption  of  beer  increased  to 
a  very  remarkable  extent,  as  soon  as  the  tax  on  whiskey  was 
raised  above  sixty  cents  per  gallon.  From  1864  to  1866  this 
increase  amounted  to  89,652,000  gallons.  To  be  more  explicit, 
in  1864  taxes  were  paid  on  68,913,000  gallons,  while  in  1866 
the  Government  collected  duties  on  158,565,000  gallons.  In 
the  absence  of  malt  liquors,  a  still  greater  part  of  the  demand  for 
stimulants  would  undoubtedly  have  been  supphed  by  stealth. 
As  it  was,  the  country  fortunately  possessed  a  brewing  industry 
capable  of  a  sudden  and  very  great  expansion,  and  of  furnishing 
to  the  poorer  parts  of  the  population  a  healthy  substitute  for 
the  stimulants  which  they  had  used  before,  but  which  were 
now  placed  beyond  their  means  by  reason  of  a  high  tax.  The 
investigation  conducted  by  the  revenue  commission  in  1865-66, 


CHAPTER  XI.  235 

though  it  was  much  hampered  by  contradictory  testimony, 
justified  the  conclusion,  that  the  cause  of  the  reduction  in  the 
production  of  distilled  spirits  in  the  United  States  in  1865,  as 
compared  with  that  in  1860,  was  the  diminished  demand  for 
spirits  for  drinking  purposes,  and  that  "  by  far  the  largest  pro- 
portion of  the  reduction  in  the  consumption  of  spirits  for  such 
purposes  has  been  on  the  part  of  the  working  or  poor  classes  of 
our  population,  and  has  been  very  considerable/'*  It  need  not 
be  said  that  the  object  here  and  elsewhere  always  has  been,  to 
make  beer  and  wine  so  much  cheaper  than  wliiskey,  that  the 
very  classes  mentioned  in  the  commission's  report  would  find 
in  the  diflference  of  price  a  sufficient  inducement  to  discontinue 
the  use  of  the  latter  and  adopt  that  of  the  former  beverage. 
According  to  the  very  best  statistical  authorities  the  excellent 
jiquor  laws  of  Sweden,  frequently  cited  as  model  temperance 
measures,  failed,  until  very  recently,  to  diminish  the  consump- 
tion of  ardent  spirits,f  partly  because  the  introduction  of  malt 
liquors  encountered  obstacles  which  prevented  a  general  use 
of  these  beverages.  In  a  number  of  official  and  semi-official 
reports  it  is  stated  that  in  Holland  and  Belgium  practical  ex- 
periments have  convinced  the  governments,  that  legislation 
directed  against  the  abuse  of  ardent  spirits  cannot  operate  suc- 
cessfully unless  supplemented  by  measures  which  enable  the 
working  classes  to  obtain  milder  stimulants  at  less  expense 
than  ardent  spirits.:}:  As  compared  with  Sweden,  the  United 
States  have  the  additional  advantages  of  a  favorable  climate 
and  of  a  very  much  superior  condition  of  the  workingmen — 
advantages  to  which  great  weight  is  due  from  a  temperance 
point  of  view, 

*  House  Ex.  Doc.  No.  62,  1st  Session,  39tli  Congress;  p.  11. 

f  The  case  of  Sweden  must  be  judged  from  a  cosmic  point  of  view,  in 
order  to  understand  fully  the  many  difficulties  which  must  be  overcome  in 
combating  intemperance  in  that  cold  climate. 

:{:  "  Real  and  Imaginary  Effects  of  Intemperance,"  p.  15. 


236  LIQUOB   LAWS   OF  THE   rNTTED    STATES. 

For  reasons  already  stated  it  is  not  contemplated  to  hazard 
any  deductions  from  available  material  as  to  the  consumption 
of  ardent  liquors  in  the  period  during  which,  by  reason  of  the. 
defectiveness  of  the  laws,  the  inefficiency  of  the  revenue  ser- 
vice, and  the  influence  of  a  powerful  ring  of  speculators  and 
politicians,  the  Government  was  defrauded  of  a  great  part  of 
the  revenue  from  this  source.  Making  due  allowance  for 
these  extensive  frauds,  it  cannot  be  doubted  that  the  consump- 
tion decreased  considerably  during  that  time.  It  is  clearly 
shown  in  the  reports  before  mentioned,  that  after  the  high  tax 
had  enhanced  the  price  of  spirits,  the  use  of  this  article  in  a 
great  number  and  variety  of  manufactures  was  discontinued. 
No  less  than  twenty  million  gallons  of  proof  spirits  were 
used,  in  1 860,  in  the  preparation  of  hiirning  jluid  alone.  After 
1862  the  production  of  this  illuminating  agent  ceased  almost 
entirely  and  was  replaced  by  petroleum.f  Among  the  in- 
dustries, in  which  the  use  of  alcohol  was  very  great  before,  and 
became  considerably  diminished  or  ceased  entirely  after,  the 
imposition  of  the  higher  rate  of  excise  taxes,  the  report  men- 
tions the  manufacture  of  varnishes,  hat  stiffening,  furniture 
polish,  perfumery,  tinctures,  patent  medicines,  imitation 
wines,  vinegar,  transparent  soaps,  percussion  caps  and  picture 
frames. 

Considered  in  connection  with  what  was  said  conceming^ 
the  diminished  demand  of  spirits  for  drinking  purposes,  these 
statements  might  well  serve  as  a  basis  for  general  conclusions, 
but  there  would  always  be  justification  for  an  objection  on  the 
ground,  that  the  extent  of  frauds  committed  in  the  period  in 
question  invalidate  any  deductions  having  reference  to  the  in- 
fluence of  the  taxes  upon  the  drinking  habits  of  the  people. 
If,  therefore,  a  wholly  reliable  conclusion  is  to  be  obtained,  it 
must  be  drawn  from  official  data  covering  a  period  during 


f  House  Ex.  Doc.  No.  62,  1st  Session,  39th  Congress;  p.  7. 


CHAPTER   XI. 


23T 


which  the  Government,  under  a  perfected  revenue  system^ 
.succeeded  in  fully  enforcing  the  laws.  Without  fear  of  con- 
tradiction it  may  be  said  that  from  1874  to  the  present  time 
the  Treasury  received  the  tax  on  ninety-seven  hundredths  of  the 
total  quantity  of  spirits  distilled  in  the  United  States.  The 
stringency  of  the  law  and  the  keen  vigilance  of  revenue  officers 
preclude  the  possibility  of  frauds  on  auything  like  a  large 
scale.  Infractions  of  the  law  are  confined  to  the  petty 
operations  of  so-called  ^noonshiners,  and  even  of  this  species 
of  illicit  manufacture  one  hears  but  very  rarely  nowadays. 
The  period  named  is  in  every  way  suited,  then,  for  a  test  of  the 
efficacy  of  the  present  policy  as  a  promoter  of  temperate  drink- 
ing habits. 

Before  undertaking  this  very  easy  task,  a  few  words 
must  be  said  about  the  tariff — only  very  few  are  necessary* 
The  prevailing  policy — that  of  protecting  domestic  manu- 
factures— necessarily  found  its  proper  application  in  the  case 
of  distilled  and  fermented  liquors,  for  it  was  universally 
conceded,  that  to  impose  an  internal  tax  on  these  articles, 
without  increasing  to  a  reasonable  extent  the  import  duties 
thereon,  would  be  legislating  in  the  interests  of  foreign  grain- 
producers  and  hop-growers  to  the  detriment  of  domestic  agri- 
culture. Considered  apart  from  its  economic  disadvantages,  such, 
legislation  was  moreover  thought  to  be  unwise  for  the  reason, 
that  it  would  retard  the  growth  of  the  domestic  brewing  in- 
dustry, and  thus  militate  against  true  temperance.  Without 
attempting  an  analysis  of  these  views,  and  without  venturing  to 
express  an  opinion  as  to  whether  fermented  liquors,  if  untaxed 
at  home,  would  need  any  protection — the  fact  must  be  stated, 
that  no  parallel  could  be  found  for  a  policy  by  virtue  of  which 
a  domestic  industry  would  be  taxed  for  the  benefit  of  its 
foreign  competitor.  Under  existing  circumstances,  it  will  be 
admitted,  there  is  nothing  economically  pernicious  in  an  import 
duty  on  spirits  and  fermented  liquors,  so  long  as  the  internal 
tax  on  these  articles  remains  what  it  is  at  present. 


238  LIQUOR   LAWS    OF    THE    UNITED    STATES. 

The  duties  on  ale,  beer  and  porter,  as  we  have  seen,  were 
increased  in  1862  to  30  cents  per  gallon,  in  bottles,  and  25 
cents  per  gallon,  in  casks  ;  in  18G-i  the  former  rate  was  raised 
to  35  cents.  At  these  rates  the  duties  continued  in  force  up  to 
1883,  when  the  duty  on  malt  liquors,  imported  in  casks,  was 
reduced  to  20  cents  per  gallon.  When  the  excise  on  spirits 
was  fixed  successively  at  sixty  cents,  one  dollar  and  fifty  cents, 
and  two  dollars,  the  import  duty  was  increased  to  $2.50  per 
gallon,  at  which  rate  it  remained  to  1870.  In  that  year  it 
was  reduced  to  $2,  which  rate  in  still  in  force.  From  1864  to 
1870  the  duties  on  wines  ranged,  according  to  quality  and 
alcoholic  strength,  from  twenty  cents  to  one  dollar  per  gallon, 
in  addition  to  an  ad  valorem  duty  of  twenty-five  per  cent ; 
sparkling  wines  paid  from  $3  to  $6  per  dozen  bottles,  according 
to  size  of  packages,  in  addition  to  two  cents  for  each  bottle. 
In  1870  the  specific  duties  on  still  wines  were  fixed  at  from  40 
to  60  cents  per  gallon,  in  casks ;  this  was  followed  by  a  tax  of 
40  cents,  which  was  superseded,  in  1883,  by  a  uniform  impost 
of  50  cents  per  gallon,  in  casks.  Sparkling  wines  now  pay 
from  $1.75  to  $7  per  dozen  according  to  size  of  bottles.  The 
importation  of  wines  containing  more  than  twenty-four  per 
cent,  of  alcohol,  is  practically  prohibited  by  a  clause  of  the 
law  which  prescribes  the  confiscation  of  all  such  liquors. 

Now,  as  to  the  results  of  internal  and  external  taxes  upon 
distilled  and  fermented  liquors  during  the  period  named,  a 
mere  glance  at  the  tables  appended  to  this  chapter  will  suffice 
to  show  that,  in  the  matter  of  temperance,  our  country  is  now 
in  the  enjoyment  of  the  blessing  for  which,  as  we  have  proved, 
nearly  every  American  statesman  of  note,  from  the  beginning 
of  our  Government  to  the  present  day,  has  wished  and  M-^orked 
—  a  blessing  which  the  governments  of  Russia,  Sweden, 
France,  Northern  Germany,  Italy,  Belgium  and  the  Nether- 
lands are  to-day  striving  to  secure  for  their  people — a  blessing 
embodying    the    realization    of    the    hope    which    Madison 


CHAPTEK   XI.  239 

expressed,  when,  voicing  the  sentiments  of  all  economists  and 
moralists  of  his  time  and  of  succeeding  generations,  he  spoke  in 
favor  of  protecting  malt  liquors,  to  the  end  that  "  the  brewing 
industry  may  strike  deep  root  in  every  State  of  the  Union." 

Consulting  the  tables  appended  to  this  chapter,  it  will  be 
found  that  from  1874  to  1884  the  average  annual  consumption 
of  ardent  spirits,  for  all  purposes,  amounted  to  64,264,354: 
gallons,  being  25,735,646  gallons  less  than  the  people  of  the 
Union  consumed  in  1860.  Comparing  this  decrease  in  the 
consumption  with  the  increase  in  the  population  of  the  United 
States  during  the  twenty-four  years  which  have  elapsed  since 
the  census  of  1860  was  taken — amounting  to  about  seventy-five 
per  cent.* — it  will  be  found  that  a  most  wonderful  change  of 
drinking  habits  has  been  produced  during  the  period  men- 
tioned. "With  a  view  to  placing  this  change  before  the 
reader  in  the  plainest  possible  manner,  we  will  select  the  year 
1883  and  compare  it  with  the  year  1860  in  the  matter  of  con- 
sumption of  ardent  and  fermented  liquors.  In  1860  the  total 
consumption  of  ardent  spirits  amounted  to  90,000,000  gallons, 
in  1883  to  76,762,063  gallons;  of  the  former  quantity  25,000,- 
000  gallons  are  assumed  to  have  been  used  in  the  arts  and 
manufactures ;  of  the  latter  eighteen  per  cent,  must  be  de- 
ducted as  representing  the  quantities  used  in  the  arts  and 
manufactures,  lost  by  leakage  and  other  causes,  and  the  quan- 
tity withdrawn  from  the  "  bonded  warehouses  "  by  reason  of 
the  expiration  of  the  bonded  period  allowed  by  law,  f  that  is  to 
say,  the  quantity  of  spirits  removed  from  the  warehouses, 
but  not  immediately  brought  to  market.:}:     The  excess  of  im- 

*  Population  in  1860,  31,443,331 ;  in  1884,  55,000,000,  arrived  at  by 
approximation  on  the  basis  of  tlie  increase  during  the  decade  1870-80. 

•j-  According  to  ofBcial  reports  the  losses  by  leakage  and  theft,  in  1883^ 
amounted  to  2,475,783  gallons. 

I  This  is  taken  into  account  by  every  competent  writer  on  the  subject. 
Hon.  D.  A.  Wells,  than  whom  no  better  authority  can  be  cited  on  the  ques- 
tion of  internal  taxation,  takes  this  ground  in  an  article  published  in  the 


240  LIQUOR   LAWS   OF    THE   UNITED   STATES. 

ports  over  exports  in  1860  amounted  to  2,011,230  gallons  ;  in 
1883  the  exportation  exceeded  the  importation  of  spirits  by 
2,672,303  gallons,  but  of  this  no  cognizance  can  be  taken 
here,  as  the  quantity  exported  is  not  included  in  the  total 
number  of  gallons  on  which,  according  to  our  tables,  taxes  were 
paid  in  the  year  1883.  The  number  of  gallons  imported — being 
1,301,919 — must,  however,  be  added  to  the  total  quantity 
withdrawn  from  warehouses,  minus  18  per  cent.  Thus  we 
obtain  the  following : 

1860  :  Population,  31,443,321,  Spirits  consumed  as  drink,  67,011,230  gallons. 
1883  "  55,000,000,      "  "  "      64,344,811      " 

Per  capita  consumption  in  1860,  2.13  gallons. 
"  1883, 1.17 

That  these  figures  are  not  arrived  at  by  computations  based 
on  anything  not  strictly  in  harmony  with  official  data,  will 
readily  be  admitted  by  every  fair-minded  reader.  There  may, 
indeed,  be  differences  of  opinion  as  to  the  quantity  of  spirits 
used  for  mechanical  and  other  similar  purposes,  as  this  part  of 
the  computation  must  of  necessity  be  guess  work  more  or  less  ; 
yet,  all  in  all,  the  above  figures  will  be  admitted  to  be  more 
favorable  to  an  argument  adverse  to  our  premise  than  the 
results  arrived  at  by  other  authors — fully  as  competent  as 
the  writer  of  this.  Thus,  to  cite  but  one  example,  Hon. 
D.  A.  Wells,  whose  knowledge  of  the  subject  is  not  surpassed 
by  that  of  any  American  economist,  has  this  to  say  on  the 
jn'esent  consumption  of  ardent  spirits  :  * 

*  See  the  article  already  quoted:  Princeton  i2mew, March,  1884;  p.  205. 


Princeton  Review  of  March,  1884.  He  there  says  :  For  the  year  1883,  with 
an  aggregate  population  of  approximately  56,000,000,  the  number  of  gal- 
Ions  of  proof -spirits  of  all  kinds  on  which  the  internal -revenue  tax  was 
paid  was  returned  at  76,762,003  ;  hut  a  considerable  part  of  this  product  un- 
doubtedly represented  spirits  which  paid  the  tax  and  were  taken  out  by  neces- 
sity, through  the  expiration  of  the  permitted  bonded  period,  and  not  by  reason 
of  any  coincident  demand  on  the  part  of  the  public  for  consumption. 


CHAPTER    XI.  241 

"  If  we  assume  tlie  present  aunual  consumption  of  domestic  distilled 
:spirits  in  the  United  States  to  be  about  70,000,000  gallons,  and  about  twelve 
per  cent.,  or  8,400,000  gallons,  of  this  amount  be  used  for  industrial  or 
scientific  purposes,  or  lost  by  leakage  and  other  casualties,  then  the  use 
of  domestic  spirits  for  drink  in  this  country  must  be  at  present  at  the  rate 
of  about  1.10  gallons  per  capita  annually  for  the  entire  population.  To  this 
must  also  be  added  the  consumption  of  foreign  or  imported  spirits — the 
amount  of  which,  exclusive  of  wines,  is  not,  however,  very  considerable,  Itsss 
than  a  million  and  a  half  of  proof-gallons  having  been  imported  during  the 
fiscal  year  1882-3.  But  adding  this  amount  to  the  consumption  of  domestic 
distilled  spirits  before  assumed,  the  total  consumption  of  spirits — wine, 
cider,  and  fermented  liquors  excepted — by  the  population  of  the  United 
States,  would  therefore  appear  to  be  at  present  at  the  rate  of  about  1.14 
gallons  per  capita." 

It  would  seem,  then;  that  the  decrease  in  the  per  capita 
consumption  of  ardent  spirits  in  the  United  States  during  the 
period  in  question  amounts  to  nearly  fiftj  per  cent.  The 
incalculable  benefits  of  this  change  will  be  better  appre- 
ciated, if  it  be  remembered  that  but  half  r  century  ago  the 
American  people  ranked  among  the  first  on  the  list  of  "  hard- 
drinking  "  nations,  whereas  to-day  they  stand  very  near  the 
foot  of  such  list.  The  following  table  from  the  exhaustive 
report  of  the  Statistical  Bureau  of  Switzerland  ^  corroborates, 
in  its  way,  the  latter  assertion. 

PER   CAPITA   CONSUMPTION   OF   SPTKITS. 

liters.  liters. 


Norway 3.90 

Great  Britain  and  Ireland 5.37 

Austria-Hungary 5. 76 

France   7.28 

Eussia 8.08 


Sweden 8.14 

German  Tax  Union 8. GO 

Belgium 9.20 

Switzerland 9.40 

Netherlands 9.87 

Denmark 18.90 

The  per  capita  consumption  of  spirits  in  this  country 
being,  according  to  our  computation,  1.17  gallons,  equal  to  4.42 

*  Zur  Alcoholfrage  &c.,  Bern,  1884,  p.  622.  Extracts  from  this  public 
•document  will  be  translated  and  publislied  in  the  forthcoming  annual  re- 
.porl  of  the  Publication  Committee.  U.  S.  Brewers'  Association. 


242  LIQUOR    LAWS    OF   THE    UNITED    STATES. 

liters,  the  United  States  would  rank  second  in  the  above  list, 
i.  e.,  below  Norway  and  above  Great  Britain.* 

To  the  mind  of  anyone  acquainted  with  what  might  be  called 
the  philosophy  of  the  drink  question,  it  must  be  evident  that  so 
great  a  decrease  in  the  consumption  of  spirits  within  so  short 
a  time,  would  not,  in  itself,  be  evidence  of  an  amelioration  of 
public  and  private  morals.  In  order  to  be  able  to  determine, 
whether  it  may  be  taken  as  such  evidence,  one  must  know 
what  it  is  that  has  taken  the  place  of  the  quantity  of  discarded 
liquors.  In  Turkey,  for  instance,  a  diminution  in  the  quantity 
of  spirits  stealthily  consumed  would  simply  mean  an  increase 
in  the  consumption  of  opium,  and  a  corresponding  augmenta- 
tion of  moral  and  physical  ills.  It  is,  in  part,  this  apprehen- 
sion of  diverting  man's  inherent  craving  for  stimulants  from, 
the  use  of  a  pernicious  article  to  one  still  more  pernicious,  that 
has  prompted  the  policy  of  aiding  the  brewing  industry  and 
fostering  grape-culture  simultaneously  with  the  adoption  of  re- 
strictive measures  directed  against  ardent  spirits.  In  no 
civilized  country  has  the  wisdom  of  such  a  course  been 
more  forcibly  demonstrated  than  in  the  United  States,  and 
Table  C.  gives  ample  proof  of  this.  It  shows  that  the 
brewing  industry  of  this  country  has  grown,  within  twenty-one 
years,  at  a  rate  for  which  the  industrial  history  of  the  world 
scarcely  affords  a  parallel.  From  62,205,375  gallons  in  1863, 
the  production  of  malt  liquors  increased  within  the  stated 
period  to  588,957,189  gallons — a  growth  which  gives  to  the 
United  States  the  third  place  among  beer-producing  nations. 
Let  figures  speak !  Adding  the  increase  in  the  production 
since  June  30,  1884,  the  following  comparative  statement  is 
obtained,  showing  the  actual  production  of  malt  liquors  in  round 
numbers : 


*  The  Swiss  report  estimates  our  per  capita  consumption  of  spirits  as 
drink  at  4.79  litres — evidently  an  error,  which  arose  from  the  fact  that 
losses,  etc.,  were  not  taken  into  account. 


CHAPTER   XI.  243 

France       175.500  0  0       •■  Depn^ark        JM^^^^^^^^^^        „ 

b:Su^    '"-'r/f^^^^^^      "    I ''^'^ '''''•'''  " 

The  per  capita  consumption  of  malt  liquors  in  our  country 
amounts  to-day  to  very  nearly  eleven  gallons.  .Deductmg  the 
population  of  States  and  Territories,  where  beer  is  not  commonly 
used  viz:  Alabama,  Arizona,  Florida,  Georgia,  Louisiana, 
Maine,  Mississippi,  New  Mexico,  North  Carolina,  South  Caro- 
lina, Tennessee,  Texas,  Utah,  Virginia  and  Washington  Terri- 
torv,  in  all  about  14,000,000,  it  will  be  found  that  the 
consumption  of  malt  liquors  in  the  other  States  of  the  Umon 
is  about  151  gallons,  very  little  less  than  the  consumption  ot 
the  same  article  in  the  German  Tax  Union,  which  is  reported 
as  amounting  to  65  liters. 

As  to  the  progress  of  domestic  grape-culture  and  the  pro- 
duction of  American  wines  since  1860,  it  is  only  necessary  to 
reproduce  a  few  figures  from  the  tables  contained  in  our  appen- 
dix and  from  the  report  of  the  Commissioner  of  Agriculture, 
to  illustrate  the  readiness  with  which  our  people  seize  upon 
a  <rood  thing.     According  to  this  authority  the  production  of 
gi^ape-wine  amounted   to  12,450,000  gallons  in  1870,  and  to 
30  000  000  gallons  in  1880.     In  the  former  year  the  excess  of 
imports  over  exports  was  9,056,192  gallons,  making  a  total  of 
21,506,192  gallons,  available  for  domestic  consumption.    In  the 
latter  year  the  excess  of  imports  over  exports  amounted  to  but 
3,925,924  gallons,  but  this  decrease  was  vastly  overbalanced  by 
increased  domestic  production,  the  quantity  on  hand  for  home 
consumption  being  33,925,924  gallons. 

In  what  manner  and  to  what  degree  this  revolution  in  the 
drinking  habits  has  ameliorated  the  physical  and  moral  con- 
dition of  the  American  people,  will  be  understood  by  every- 
one who  is  at  all  acquainted  with  the  effects  of  distilled  and 


2-i-i  LIQUOR    LAWS    OF   THE   UNITED   STATES. 

fermented  liquors  upon  the  mind  and  body  of  man.*  A  single 
example  may  answer  present  purposes.  Comparing  Bavaria 
with  Denmark,  in  point  of  consumption  of  ardent  and  malt 
liquors,  and  in  the  matter  of  insanity  produced  by  drunkenness, 
we  obtain  the  following  : 

Consumption  of  Consumption  of  Percentage  of  insanity 

spirits.  malt  liquors.  produced  by  drink. 

Bavaria :  4.31  liters.  262.00  liters.  2.55. 

Denmark:  18.90      "  33.33     "  11. 

Thus,  it  will  be  seen  that  the  consumption  of  beer  is  over 
seven  times  greater  in  Bavaria  than  in  Denmark,  whei-eas  the 
percentage  of  insanity  produced  by  inebriety  is  five  times  less 
in  the  former  than  in  the  latter  country ;  besides,  it  would 
seem  from  a  letter  addressed  to  the  writer  by  Dr.  v.  Ziemssen 
— well-known  to  every  medical  practitioner  as  the  editor  of 
the  Cyclopedia  of  the  Practice  of  Medicine — that  even  this 
small  percentage  is  due  to  the  effects  of  spirituous  liquors,  the 
use  of  which  is  confined  to  a  small  class  of  people  given  to 
excesses  of  all  kinds. 

Not  until  physicians,  philosophers  and  statisticians  shall 
jointly  make  this  question  a  subject  of  thorough  and  systematic 
research,  can  we  hope  to  be  made  familiar  with  aU  the  advan- 
tages which  the  individual  and  the  community  have  reaped 
from  the  policy  pursued  by  the  Government  since  the  year 
1862  ;  but  what  is  positively  known  at  present  is  amply  suffi- 
cient to  characterize  this  course  as  the  only  eflTective  means  by 
which  the  evil  results  of  a  habit,  as  old  as  mankind,  can  be 
reduced  to  a  minimum.  The  substitution  of  malt  liquors  for 
ardent  spirits  has  been  the  desideratum  of  all  patriotic  states- 
men from  Washington's  administration  to  our  day.     It  has 


*  For  information  on  this  subject  the  reader  is  again  referred  to  the 
writer's  statistical  sketch  :  Real  and  Imaginary  effects  of  Intemperance, 
New  York,  1884. 


CHAPTER    XI.  245 

been  realized  or,  rather,  is  still  being  realized  by  the  very  means, 
amplified  to  suit  present  conditions,  which  Hamilton  proposed 
eighty-five  years  ago  —  a  means  which  is  at  present  resorted 
to  by  the  Governments  of  all  comitries  where  inebriety 
prevails. 

If  proof  of  the  efficacy  of  this  temperance  policy  were  lack- 
ing in  the  United  States,  abundance  of  it  could  be  obtained  from 
European  countries.  The  oft-quoted  report  of  the  Statistical 
Bureau  of  Switzerland,  prepared  by  men  trained  in  a  school  of 
statesmanship,  which  is  reputed  for  its  thoroughness,  com- 
prises, on  634  pages,  comparative  treatises  on  the  results  of  the 
liquor  laws  of  Sweden,  Norway,  Finland,  Russia,  Denmark,  the 
Netherlands,  Belgium,  Prussia,  Bavaria,  Wurtemberg,  Baden, 
France,  Great  Britain,  the  United  States  and  Austria.  The 
object  of  the  investigation  was,  to  ascertain  by  what  legal 
measures  the  vice  of  drunkenness  can  be  mitigated  in  its 
effects  on  society  and  on  the  individual.  The  results  of  this 
investigation — based  on  the  experiences  of  ten  of  the  most 
civilized  countries — show  that,  in  order  to  successfully  combat 
intemperance,  governments  must  rely  on  the  rational  policy 
which  at  present  prevails  in  our  country.  The  report  states 
(page  633)  that  the  means  to  be  employed  against  intemper- 
ance must  necessarily  vary  in  accordance  with  the  differences 
of  local  views  and  the  conditions  of  the  various  countries,  but 
that,  generally  speaking,  the  following  measures  are  indispens- 
able conditions  of  success,  viz  :  "  1.  suppression  of  technically 
imperfect  distillation  ^^  2.  a  system,  of  taxation  and  admin- 
istration hy  which  the  manufacture  of  and  traffic  in  distilled 
spirits  can  he  controlled,  and,  if  need  he,  restricted,  and  hy 
which  the   collection  of  high  duties  on  spirits   is  rendered 


*  This  refers  to  rural  distillation,  which  iu  our  country  was  nearly 
wiped  out  by  the  internal  tax — distillation  being  at  present  confined  to  an 
inconaiderable  number  of  very  large  establishments. 


246  LIQUOR   LAWS    OF   THE   UNITED   STATES. 

feasible  y    3.  the  reduction  or  abolition  of  taxes  on  wholesome 
ieverages.''^  * 

This  is  virtually  the  basis  on  which  rests  the  celebrated 
Swedish  system,  and  the  same  course  is  being  pursued  in  Bel- 
gium and  in  the  Netherlands.  It  is  the  policy  of  Germany  and, 
according  to  latest  news,twill  in  a  short  time  be  that  of  Russia. 
In  France,  the  greatest  grape-growing  country  of  the  world, 
malt  liquors  bid  fair  to  become  a  popular  beverage — not,  as 
many  believe,  because  literary  Chauvins  have  succeeded  in 
making  beer  the  scapegoat  for  the  late  French  reverses,  but  be- 
cause eminent  scientists  have  discovered  that  the  poor  physical 
condition  of  a  large  part  of  the  French  army,  as  manifested 
during  the  memorable  campaign  of  1870,  is  attributable 
to  the  excessive  use  of  strong  wines  and  of  ardent  spirits, 
particularly  of  absynth  and  like  dangerous  drinks.  They 
therefore  conceived  the  idea  of  rescuing  their  people  from 
physical  degeneracy,,  by  advocating  the  introduction  of  malt 
liquors.  The  celebrated  Pasteur  distinctly  states  in  the  pre- 
face to  his  Studies  on  Beer,  that  he  drew  his  inspirations  from 
the  French-German  war.     These  are  his  words : 

"  The  idea  of  making  these  researches  was  inspired  by  our  misfortune. 
I  began  them  immediately  after  the  war  of  1870,  and  pursued  them  with- 


*  As  the  above  is  not  a  literal  translation,  the  original  text  is  here 
given  so  as  to  avoid  even  the  semblance  of  unfair  dealing  : 

"Im  Allgemeinen  durfen  als  absolute  Erfordernisse  des  Erfolgs 
bezeichnet  werden  :  die  Unterdriickung  der  technisch  unvollkommeneu 
Brennerei,  die  Wahl  eines  Steuer-  und  Verwaltungssystems,  das  die  staat- 
liche  Ueberwachung,  nothigenfalls  auch  die  Beschrankung  der  Fabrikation 
und  des  Kleinhandels  und  die  Durchfiihrung  strenger  fiskalischer  An- 
spriiche  an  den  Branntwein  ermoglicht  und  die  Entlastung  der  gesunden 
Getranke  zu  verwirklichen  gestattet. 

f  The  Archivfilr  russiche  Brauerei,  published  at  Moscow,  under  date  of 
January  1,  1885,  states,  that  the  Russian  Government  is  about  to  issue 
regulations  facilitating  the  sale  of  malt  liquors,  reducing  the  taxes  on  these 
articles,  and  rendering  the  license  system  more  convenient  to  retailers  of 
beer. 


CHAPTER    XL  247 

out  relaxation  up  to  the  present  time,  with  a  view  of  securing  durable 
progress,  in  our  country,  to  an  industry  in  which  Germany  is  greatly  superior 
to  us." 

But  why  multiply  illustrations  of  what  is  universally  re- 
garded as  a  self-evident  fact  ?  Why  cite  European  observa- 
tions, when  our  own  experiences  are  everywhere  looked  upon 
as  the  best  evidence  that  the  temperance  problem  can  be 
solved,  without  recourse  to  any  other  measures  than  those 
which  the  government  of  a  free  people  is  at  liberty  to  resort 
to  in  the  legitimate  exercise  of  the  taxing  power  ? 

In  our  country  the  complete  ^ohxtion  of  the  problem,  which, 
as  Cobden  claims,  lies  at  the  foundation  of  all  social  and 
political  reform,  is  now  merely  a  question  of  time.  Measuring 
the  future  progress  of  temperance  by  the  standard  furnished 
by  the  experiences  of  the  past  twenty -three  years,  there  can 
be  no  doubt,  that  within  two  decades  the  American  people 
will  occupy  the  very  lirst  place  among  temperate  nations. 
Provided  that  the  conditions,  under  which  the  astonishino' 
decrease  in  the  consumption  of  ardent  spirits  and  the  increase 
in  the  use  of  fermented  liquors  has  taken  place,  remain  essen- 
tially unchanged,  the  drinking  habits  of  the  people  will  be  so 
radically  reformed  for  the  better,  that,  at  the  end  of  the  present 
century,  a  relapse  into  the  earlier  condition  of  inebriety  will 
have  become  well-nigh  impossible.  There  is,  in  fact,  no  other 
solution  of  the  problem  than  that  which  the  present  policy 
of  the  Government  offers — the  same  policy  which  prevailed 
under  Washington's  Administration,  and  which,  doubtless, 
would  liave  been  adhered  to,  had  not  prejudices,  diplomatic 
cabals,  insurrectionary  machinations,  political  opportunism 
and  economic  fallacies  combined  to  silence  the  strong  moral 
considerations  urged  in  its  favor.  In  whatever  manner  the 
temperance  question  is  to  be  decided,  whether  on  social  or 
moral,  on  fiscal  or  economic  grounds — this  must  be  the  policy, 
for,  judged  from  either  or  all  of  these  points  of  view,  its 
efficacy  admits  of  no  doubt. 


248  LIQUOR    LAWS   OF   THE   UNITED   STATES. 

The  admonition,  then,  which  every  friend  of  temperance 
should  address  to  the  national  law-makers  is,  "  to  let  well- 
enough  alone."  This  is  not  saying  that  there  is  no  room  for 
improvement  in  the  details  of  the  law,  but  simply,  that  the 
principles  which  form  the  basis  of  our  present  regulation  of 
the  liquor  question  should  not  be  set  aside — that,  in  fact,  they 
cannot  be  set  aside,  without  hazarding  the  moral  and  social 
welfare  of  the  people.  Within  the  range  of  legislative  possi- 
bilities there  is  nothing  that  could  with  advantage  be  substi- 
tuted for  our  present  system,  and  among  the  measures  which 
have  so  far  been  tried,  here  and  elsewhere,  not  one  could  stand 
the  test  of  time  and  experience. 

The  experiments  made  in  our  country  range  from  one  ex- 
treme to  the  other — from  total  non-interference  to  absolute 
prohibition.  The  result  of  both  was  "  free  whiskey."  In  the 
case  of  prohibition  it  is  "free  whiskey,"  to  the  exclusion  of 
malt  liquors,  and  for  this  reason  the  policy  of  protection  and 
non-interference,  to  which,  at  the  dictation  of  the  rural  popula- 
tion, the  National  Government  adhered  during  half  a  century, 
would  be  preferable,  on  temperance  grounds,  to  the  realization 
of  the  Maine  idea.  Under  the  former  policy  it  was  at  least 
possible  for  men  of  moderate  drinking  habits  to  remain  tem- 
perate, whereas  Prohibition,  by  destroying  the  brewing  indus- 
try, subjects  even  those  persons  who,  by  force  of  habit  and 
taste,  incline  to  the  use  of  fermented  drinks,  to  a  far  greater 
danger  of  abuse,  by  driving  them  to  the  consumption  of  dis- 
tilled liquors. 

The  proper  policy,  as  we  have  seen,  lies  midway  between 
these  two  extremes.  Viewed  in  the  light  of  our  past  ex- 
periences, any  attempt  to  change  this  policy  must  be  regarded 
as  a  crime  against  the  moral  and  physical  welfare  of  the 
American  people. 


REVENUE   TABLES. 


249 


TABLE   A.* 

STATEMENT  showing  the  TOTAL  INTERNAL  REVENUE  RE- 
CEIPT8  from  SPIRITS  distiUed  from  whatever  materials  at  the 
SEVERAL  DIFFERENT  KATES  or  TAX,  together  with  the  QUAN- 
TITIES of  the  same  on  which  the  tax  icas  paid,  and  the  AVERAGE 
RATE  of  TAX  per  GALLON  on  the  AGGREGATE  QUANTITIES 
taxed  each  year,  by  fiscal  years,  from  September  1 ,  1862.  to  June  30,  1884. 


Fiscal  years 
ended  June  30. 


1863. 
1864. 


1866.. 

1867. 
1868. 

1869. 

1670. 
1871. 
1873. 

1873. 

1874. 

1875. 

1876. 

1877. 
1878. 

1879. 

1880. 
1881. 


1884 


Total.... 


$0  20 
20 
60 
20 
25 
50 
60 

1  50 

2  ro 

50 

1  50 

2  00 

1  00 

2  00 

1  00 

2  00 
50 
60 

2  00 

'"'so 

50 
50 
50 
70 
70 
70 
90 
70 
90 
70 
90 
70 
90 
50 
70 
90 
70 
90 
70 
90 
70 
90 
90 
90 


Aggregate 

collections  at 

each  rate. 


»  ^  Aggregate  '     Aggregate 

nna^tmtfps  at  '■  collectioHB  for     quautities  for 

^^^h  -oft      '      each  fiscal  ,      each  fiscal 

each  rate.     | 


$3,229,990  79 

11,372,719  13 

17,059,078  70 

965,705  16 

7,565  41 

2,980  78 

2,897,115  50 

7,281,187  14 

4,853,153  00 

44,740  70 

2.38,759  14 

29,198.578  15 

13,069  .56 

29,151,339  78 

1.58.885  62 

14,131,845  36 

18,787,891  70 

14,630  370  60 

265,366  11 

51,695  27 

39,!M5,099  04 

31,157..314  15 

33,117,788  99 

7,516,8.35  35 

35,614.229  43 

43,807,093  70 

38,8t)8,8;38  76 

8,009,099  34 

2,873,264  46 

48,517,225  97 

62,159  (i9 

52,609,132  25 

25,328  53 

45,601,204  53 

15,502  27 

2,767  a3 

47,691,194  94 

190  84 

55,918,928  34 

1,251  58 

62,212,875  98 

2  17 

64,778,754  80 

69,085,856  73 

71,655,211  33 


Oallons. 

16,149,954 

56,863,595 

28,431,798 

4,828,525 

30,262 

5,961 

4.828,525 

4,854.125 

2,426,576 

89.481 

159,173 

14,599.289 

13,070 

14,575.670 

158,886 

7,065,923 

37,575,783 

24,383.951 

132,683 

78,490,198 

62.314,628 

66,235,578 

15,033,671 

50,877,470 

62,581,562 

55,526,912 

8,898,999 

4,104,664 

53,908.029 

88,798 

58,464,591 

36,184 

50,668,005 

31,005 

3,953 

52,990,217 

272 

62,132,143 

1,788 

69,125,418 

3 

71,976,395 

76,762,063 

79.616,901 


$912,729,187  20  '  1,197,032,677 


$3,229,900  79 
28,431,797  83 


16,007,706  99 


29,482,077  99 

!■    29,164,409  34 
\    14,290,730  98 

33,735,323  68 

39,245,099  04 
31,157,314  15 
33,117,788  99 

[  43,131,064  78 

43,807,093  70 

I  46,877,938  10 

|-  51,390,490  43 

j-  52.671,291  34 

[•  45,626,533  06 

t  47,709,464  24 

j-  55,919,119  18 
i  62,214,127  56 

!■  64,778,756  97 

69,085,856  73 
71.655.211  33 


Gallons. 
16,149,954 

85,395,393 


16,973,974 


14,847,943 

14,588,740 
7,224,809 

62,092,417 

78,490,198 
62,314,628 
66,235.578 

65.911,141 

62,581,562 

64,425,911 

58,512,693 

58,043.389 

50,704,189 

53.025,175 

62,132,415 
69,127,206 

71,976,398 

76,762.063 
79,616.901 


$912,729,187  20  I    1,197,032,677 


*  From  the  report  of  the  Commissioner  of  Revenue,  1884. 


250 


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REVENUE   TABLES. 


251 


TABLE   C* 


STAIEMEWT  showing  the  INTERNAL  REVENUE  RECEIPT f^  from  FER- 
MENTED LIQUORS  at  ONE  DOLLAR  per  BARREL  aial  at  SIXTY  CENTS 
per  BARREL,  together  with  the  QUANTITIES  of  the  game  on  which  TAX  was 
PAID  during  each  fiscal  year,  from  September  1,  1863,  to  June  30,  1884. 


Fiscal  years  ended 
June  30. 

Rates  of  tax  at 

which  collections 

were  made. 

Aggregate 

collections  at 

each  rate. 

Aggregate 

quantities 

at  each 

rate. 

Aggregate 

collections  for 

each  fiscal 

year. 

Aggregate   quantities   in 
barrels  and  their  equiva- 
lents in  gallons  for  each 
fiscal  year. 

1863 "I 

1864 "1 

1865        

$1  00 
60 
60 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 
1  00 

$885,271  88 
672,811  53 
1,376,491  12 
847,228  61 
3,657,181  06 
5.115,140  49 
5,819,345  49 
5,685,663  70 
5,866,400  98 
6,081,520  54 
7,159,740  20 
8,009,969  72 
8,910  823  83 
8,880,839  68 
8,743,744  62 
9,159,675  95 
9,074,305  93 
9,473,360  70 
10,270,352  83 
12,346,077  26 
13,2.37,700  63 
15,680,678  54 
16,426,0.50  11 
17,573,722  88 

Barrels. 

885,272 
1,121,353 
2,294,152 
847.229 
3,657,181 
5.115.140 
6,207,402 
6.146.663 
6,312,0-5 
6,574,617 
7,740,260 
8,6.59.427 
9,633,323 
9,600,897 
9,452,697 
9,902,352 
9,810,060 
10,241,471 
11,103,084 
13,347,111 
14,311,028 
16,9.52,085 
17,757,892 
18,998,619 

|-  $1,558,083  41 

!•    2,223,719  73 

3,657,181  06 
5,115,140  49 
5.819,345  49 
5,685,663  70 
5,866,400  98 
6.081,520  51 
7,159,740  20 
8.009.969  72 
8,910,823  83 
8,880,829  68 
8,743,744  62 
9,159,675  95 
9,074,305  93 
9,473,360  70 
10.270,352  83 
12,346,077  26 
13,237,700  63 
15,680,678  54 
16,426,050  11 
17,573,722  88 

Barrels. 
2,006,625 

3,141,381 

3,657,181 
5,11.5,140 
6,207,402 
6,146,663 
6,342,055 
6,574,617 
7,740,360 
8,659.427 
9,633,323 
9,600,897 
9,452,697 
9,902,352 
9,810,060 
10,341.471 
11.103,084 
13,347,111 
14,311,028 
16,953,085 
17,757,892 
18,998,619 

306.701,370 

Gallons. 
62,205.375 

97,382,811 
113,372,611 

1866  

158,569,340 

1867 

1868  

193,439,463 
190,546,553 

1869 

196,603,705 

1870 

203,813,127 

1871 

1872 

239.948,060 
268,442,337 

1873  

298,633,013 

1874 

1875 

1876 

1877 

297,627,807 
293  033,607 
306,972,912 
304,111,860 

1878 

317.485.601 

1879  

344,195,604 

1880 

413,760,441 

1881 

443,641,868 

1882  

525,514,635 

1883 

550,494,653 

1884  

588,957,189 

Totol 

$190,954,088  28 

206,701,370 

$190,954,088  28 

6,407,742,470 

1 

STATEMENT  showing  the  AMOUNT  of  INTERNAL  REVENUE  derived  from 
FERMENTED  LIQUORS  at  ONE  DOLLAR  per  BARREL  and  at  SIXTY 
CENTS  per  BARREL,  tinder  the  ENACTMENTS  IMPOSINO  THOSE  RATES, 
the  QUANTITIES  on  which  the  TAX  was  PAID,  the  DATE  when  EACH  RATE 
was  IMPOSED  and  when  it  ENDED,  and  the  LENGTH  of  TIME  each  rate  was 
in  force,  from  Jidy  1,  1862,  to  June  30,  1884. 


Rates 
of  tax 

per 
barrel. 

Dates  of  Acts. 

Length  of 

time  rates 

were  In 

force. 

Aggregate 

Aggregate 

Articles, 

^^ftlJXx'l^-^-^tax. 

collections,      quantities 

Ale,  beer,  lager  beer, 
porter,  and  other  simi- 
lar fermented  liquors. 

Ale,  beer,  lager  beer, 
porter,  and  other  aimi- 
far  fermented  liquors. 

Ale,  beer,  lager  beer, 
porter,  and  other  simi- 
lar fermented  liquors. 

$1  00 

60 

1  00 

July  1,  1862 
Mar.  3,  1863 
July  1,1862 

Mar.  3,  1863 
(Limiting  to 
Mar.  31,1864) 

6  months 

13  months 

843  months 

$885,271  88 

2.049,302  65 

188,019.513  75 

Barrels. 

885,272 

3,415,504 
202,400,594 

Total 

$190,954,088  28 

206,701,370 

From  the  report  of  the  Commissioner  of  Internal  Revenue,  1884. 


APPENDIX. 


See  Chapter  IV. 

The  dispatches  of  the  French  ambassador  Fauchet  to  his  govern- 
ment, which  fell  into  the  hands  of  the  British  by  the  capture  of  a  French 
privateer,  and  were  transmitted  to  the  British  ambassador  at  Washington, 
contained  sufficient  evidence  to  convict  Randolph  of  complicity  in  the 
movements  mentioned.  The  following  extracts  from  said  dispatches 
plainly  show  this.     Fauchet  wrote  : 

"  The  measures  which  prudence  prescribes  to  me  to  take  with  respect 
to  my  colleagues,  have  still  presided  in  the  digesting  of  the  dispatches 
signed  by  them,  which  treat  of  the  insurrection  of  the  western  countries, 
and  of  the  repressive  means  adopted  by  the  Government.  I  have  allowed 
them  to  be  confined  to  the  giving  of  a  faithful,  but  naked  recital  of  events. 
The  reflections  therein  contained  scarcely  exceed  the  conclusions  easily 
deducible  from  the  character  assumed  by  the  public  prints.  I  have 
reserved  myself  to  give  you,  as  far  as  I  am  able,  a  key  to  the  facts  detailed 
in  our  reports.  When  it  comes  in  question  to  explain,  either  by  conjectures 
or  by  certain  data,  the  secret  views  of  a  foreign  government,  it  would  be 
imprudent  to  run  the  risk  of  indiscretions,  and  to  give  one's  self  up  to  men, 
whose  known  partiality  for  that  government,  and  similitude  of  passions 
and  interests  with  its  chiefs,  might  lead  to  confidences,  the  issue  of  which 
is  incalculable.  Besides,  the  precious  confessions  of  Mr.  Randolph  alone 
throw  a  satisfactory  light  upon  every  thing  that  comes  to  pass.  These  I 
have  not  vet  communicated  to  my  colleagues.  The  motives  already  men- 
tioned lead  to  this  reserve,  and  still  less  permit  me  to  open  myself  to  them 
at  the  present  moment.  I  shall  then  endeavor.  Citizen,  to  give  you  a  clew 
to  all  the  measures,  of  which  the  common  dispatches  give  you  an  account, 
and  to  discover  the  true  causes  of  the  explosion,  which  it  is  obstinately 
resolved  to  repress  with  {Treat  means,  although  the  state  of  things  has  no 
longer  any  thing  alarming.  To  confine  the  present  crisis  to  the  simple 
question  of  the  excise,  is  to  reduce  it  far  below  its  true  scale  ;  it  is  indubit- 
ably connected  with  a  general  explosion  for  some  time  prepared  in  the 
public  mind,  but  which  this  local  and  precipitate  eruption  will  cause  to 
miscarry,  or  at  least  check  for  a  long  time.     Ih  order  to  see  the  real  cause. 


APPENDIX.  253 

in  order  to  calculate  tlie  effect  and  the  consequences,  we  must  ascend  to  the 
origin  of  the  parties  existing  m  the  State,  and  retrace  their  progress." 
*******»■» 
When  the  riot  had  reached  its  height,  in  August,  1794,  and  prepara- 
tions were  being  made  to  suppress  the  insurrection,  Fauchet  wrote  : 

"Scarce  was  the  commotion  known  {i.  e.  the  uprising  in  the  West 
during  July  and  August,  1794)  when  the  Secretary  of  State  (Randolph) 
came  to  my  house.  All  his  countenance  was  grief.  He  requested  of  me  a 
private  conversation.  '  It  is  all  over,'  he  said  to  me  :  '  a  civil  war  is  about  to 
ravage  our  unhappy  country.  Four  men,  by  their  talents,  their  influence, 
their  energy,  may  save  it.  But,  debtors  of  English  merchants,  they  will 
be  deprived  of  their  liberty  if  they  take  the  smallest  step.  Could  you  lend 
them  instantaneous  funds  to  shelter  them  from  English  persecution  ! ' 
This  inquiry,"  the  dispatch  continued,  "  astonished  me.  It  was  impossible 
for  me  to  render  a  satisfactory  answer.  You  knowing  my  want  of  power, 
and  my  defect  of  pecuniary  means,  I  shall  withdraw  myself  from  the  affair 
by  some  common-place  remarks,  and  by  throwing  myself  on  the  pure  and 
disinterested  principles  of  the  republic." 

Eandolph  himself  was  clearly  among  the  four  men  who  needed  this 
money  to  save  their  country. 

********* 

Still  later  Fauchet  wrote: 

"It  appears  that  these  men,  with  others  unknown  to  me,  all  having 
without  doubt  Randolph  at  their  head,  were  balancing  to  decide  on  their 
party.  Two  or  three  days  before  the  proclamation  was  published,  and  of 
course  before  the  Cabinet  had  resolved  on  its  measures,  Mr.  Randolph 
came  to  see  me  with  an  air  of  great  eagerness,  and  made  to  me  the  over- 
tures, of  which  I  have  given  you  an  account  in  my  No.  6.  Thus,  with  some 
thousands  of  dollars,  the  republic  could  have  decided  on  civil  war  or  peace  ! 
Thus  the  consciences  of  the  pretended  patriots  of  America  have  already 
their  price  !  It  is  very  true  that  the  certainty  of  these  conclusions,  painful 
to  be  drawn,  will  forever  exist  in  our  archives.  What  will  be  the  old  age 
of  this  Government,  if  it  is  thus  early  decrepid?  " 


See  Chapter  V. — Wine  op  the  Gkapk. 

The  proper  wines  of  the  grape,  of  the  best  qualities,  are  those  produced 
in  various  climates  which  are  found  in  the  United  States,  if  reliance  can  be 
placed  upon  the  indications  of  temperature  which  I  have  ventured  to 
suggest.  To  the  kinds  of  that  liquor  which  have  been  mentioned,  the 
celebrated  wine,  called  Tokay,  may  be  added.     It  is  produced  near  a  place 


254  LIQUOK   LAWS    OF   THE   UNITED    STATES. 

of  the  same  name,  situated,  in  Hungary,  in  49°  north,  in  a  temperature 
approaching  to  that  of  Champagne,  one  of  the  best  wine  districts  of  France. 
This  situation  may  be  considered  as  nearly  corresponding  with  that  of  the 
country  around  the  common  point  of  contact  of  Virginia,  Maryland,  and 
Pennsylvania.  The  exquisite  wines  of  the  Cape  of  Good  Hope,  particularly 
the  red  and  white  Coustantia,  which  are  produced  in  34°  south,  a  position 
deemed  colder  than  the  same  latitude  north,  may  be  also  added.  The 
Madeira  produces  there  an  excellent  wine. 

It  has  been  understood,  within  a  short  time,  that  some  enterprising 
and  well  informed  emigrants  from  Germany,  after  careful  experiments, 
have  considered  the  temperature  of  the  southwestern  corner  of  Pennsylva- 
nia as  suitable  for  the  production  of  the  Bheniah  and  Moselle  qualities  of 
wines.  This  fact  contributes  to  support  the  opinion,  that  it  will  be  safe  to 
count  the  degrees  and  minutes  of  common  temperature  in  Europe  and 
North  America,  respectively,  from  Lisbon  and  St.  Augustine  or  New 
Orleans. 

It  appears  by  the  returns,  that  about  ninety-six  quarter  casks  (a 
quantity  of  good  red  wine  worthy  of  notice)  have  been  made  by  a  few  Swiss 
settlers,  from  the  Madeira  and  Cape  of  Good  Hope  grapes,  on  the  river 
Ohio,  in  about  39°  north  latitude,  in  the  territory  of  Indiana.  It  is  also 
understood,  that  a  good  wine,  really  fit  for  table  use,  has  been  made  in  the 
vicinity  of  Columbia,  in  South  Carolina.  Other  experiments  have  been 
made   with  various  success. 

The  grape  vine  of  several  distinctly  different  species  is  indigenous  in 
the  Unitea  States,  and  is  found  in  every  degree  of  latitude,  from  the  river 
St.  Croix  to  the  Gulf  of  Mexico.  It  is,  doubtless,  from  such  original  stocks, 
in  corresponding  temperatures  of  Europe,  that  its  several  present  excellent 
wine  grapes  have  been  obtained  by  selection,  choice  of  position,  and  soil 
and  cultivation.  The  skill  of  the  wine  maker,  resulting  from  practice,  and 
improved  by  the  relative  arts,  has  curiously  perfected  the  manufacture  of 
wine.  This  commodity  rewards,  by  profit  and  pleasure,  the  skill  and 
exertion  of  its  improvers.  A  striking  difference,  very  interesting  to  the 
United  States,  occurs  in  the  charaters  of  certain  great  classes  of  foreign 
wines,  extensively  used  in  this  country,  a  statement  and  attempt  to  explain 
which  may  contribute  to  improve  the  future  operations  of  the  wine  makers 
of  the  United  States. 

It  has  been  constantly  observed  that,  although  the  superior  red  and 
white  wines  of  France  (the  Burgundy,  the  finer  clarets,  the  Champagne, 
and  the  Sauterne)  are  proved  by  the  hydrometer  to  be  as  strong  as  some, 
and  stronger  than  others,  of  the  wines  of  Spain,  Portugal,  and  their  wine 
islands,  (the  Sherry,  the  Pacharetta,  the  Lisbon,  the  Carcavella,  the  Madeira, 
the  TenerifEe,  the  Fayal,  and  the  St.  Michael's)  yet  the  French  wines  can 


APPENDIX.  255 

only  be  kept  i)i  bottles  icell  corked  and  sealed,  while  the  latter  are  constantly 
kept  upo7i  tap,  in  Jialf  emptied  casks.  It  is  also  observed,  that,  within  a 
few  hours  after  the  uncorking  of  a  bottle  of  French  wine,  especially  of  any 
of  the  superior  qualities,  it  becomes  sensibly  bad,  while  these  white  wines 
of  Spain,  Portugal,  and  their  islands,  remain  good,  and  some  of  them  even 
improve  in  decanters,  which  by  accident  have  remain  long  unstopped.  This 
difference  is  considered  to  be  occasioned  by  the  fact,  that  the  spirit  of  the 
French  wine  is  its  own  natural  and  proper  fermented  spirit,  while  the 
Portugese  and  Spanish  wines  have,  in  addition  to  ih.eiv  fermented,  luiusiOTis 
of  distilled  spirits  or  brandy.  The  French  wines,  soon  after  their  exposure 
to  the  air,  by  the  drawing  of  the  cork,  are  believed  to  recommence  fermen- 
tation, and  are  quickly  injured,  having  been  before  sufficiently  and  most 
perfectly  fermented  ;  while  the  distilled  spirits  in  those  wines  of  Spain  and 
Portugal  prevents  a  similar  recommencement  of  fermentation  and  its  con- 
sequent injuries.    Distilled  spirits  have  no  sensible  fermentation. 

Believing  in  this  cause  of  the  difference  between  those  two  great  classes 
of  wines,  and  deeply  impressed  with  the  importance  of  that  difference,  in 
several  views,  I  submitted  the  facts,  in  a  guarded  and  informal,  conference 
with  the  President,  Vice-Presidents,  and  several  other  learned  and  judicious 
members  of  the  American  Philosophical  Society,  at  one  of  our  meetings,  in  a 
manner  which  led  to  suggestions  of  the  moment,  from  the  gentlemen, 
respectively,  in  order  to  attain  a  knowledge  of  the  cause;  and,  after  hearing 
the  whole,  that  which  I  have  stated  was  also  submitted  to  their  considera- 
tion, and  was  received  with  as  much  assent  as  the  nature  of  a  learned  body 
and  of  the  subject  rendered  proper  and  necessary,  on  a  new  and  informal 
communication.  This  matter  is  introduced  here  as  the  foundation  of  a 
suggestion,  that,  in  the  wine-making  business  of  the  United  States,  in 
internal  situations,  where  bottles  may  be  costly  or  unattainable,  a  cautious 
infusion  of  the  barely  necessary  portion  of  homogeneous  distilled  spirits 
(the  purest  and  best  brandy  of  the  grape)  will,  probably,  enable  our  citizens 
to  keep  their  wine  as  they  keep  those  of  Lisbon,  Xeres,  Madeira,  Fayal, 
and  Teneriffe,  in  half  empty  casks  and  common  decanters.  Thus,  not  only 
a  great  and  universal  economy  in  respect  to  bottles  may  be  made,  but  the 
practicability  of  keeping  wines,  in  a  condition  fit  for  use,  may  be  extended 
to  all  situations,  and  to  every  storekeeper  and  family.  Hitherto  the  manu- 
facture of  fermented  liquors  has  been  impeded,  by  the  expense  of  bottles, 
and  often  by  the  total  want  of  them. 

As  the  grape  and  its  wines  and  essential  salt  (known  under  the  name 
of  cream  of  tartar)  are  of  very  considerable  importance  to  our  interior 
country,  which  must  receive  foreign  wines  at  costs  and  charges,  which  a 
great  majority  of  the  people  cannot  sustain,  and  as  wine  has  a  high  value 
as  an  inducement  from  distilled  spirits  and  as  a  medicine,  besides  the  value 


^56  LIQUOR    LAWS   OF   THE    UNITED    STATES. 

of  tlie  fresli  and  dry  grape,  it  is  a  matter  of  real  consequence  in  this  state- 
ment, that  the  success  of  the  wine  manufacture  appears  to  be  rendered 
certain,  by  the  variety  and  universality  of  native  grapes,  by  a  number  of 
successful  esperiments,  and  by  the  correspondence  of  temperature  between 
parts  of  our  country  and  the  districts  of  the  Tokay,  the  Champagne,  the 
Moselle,  the  Ehenish,  and  the  Hock,  the  Burgundy,  the  various  clarets  of 
Bordeaux,  the  Sauterne  and  the  Grave,  the  Oporto,  the  Lisbon,  and  other 
superior  or  estimable  wines  of  the  European  continent,  and  those  also  of 
the  Cape  of  Good  Hope.  Extreme  heat  does  not  appear  necessary  or  even 
favorable  to  the  happiest  concoction  of  the  juices  of  the  grape,  the  orange,  and 
fruit  in  general.  France,  not  less  distinguished  for  its  various  and  exquisite 
fruits  than  any  other  country,  has  no  point  more  southern  than  42°  26^ 
north  latitude.  In  considering  the  character  of  Madeira  and  its  wines,  it 
will  be  remembered  that  it  is  a  small  and  elevated  island,  and  similar  con- 
siderations, as  to  temperature,  arise,  in  regard  to  the  Constantia  vineyards, 
at  the  southern  point  of  Africa,  the  Gape  of  Good  Hope,  which  must  greatly 
partake  of  insular  characteristics. 


Imports  and  Export 

of  Beer, 

Ale  and  Porter,  Spirits  and  Wi 

es,  into  and  from  ttie  United  States  during 

he 

years  1790  to  182Q  inclusive. 

1  s 

.MPORTS. 

' 

DOMESTIC    EXPORTS. 

L 

=^.,.,^                  1               w,«« 

ymtts. 

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raltTBIL 

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880.540 
300.777 
93S,D08 

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ooioin 
11,0811 

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m.im 

110,0^ 
108.070 

6^700 
48.dM 

43,691 

t5|30B 
1,035 

4T.370 

ioo;4t»l 

OoisBO 

as!  no 

4^008 
8,G04 

lOJTM 
3,flfll 
10.310 
1G.6I» 
83,e7G 

43.010 

aa^7U7 
lasissa 

S00,OlH 

11 

iE 

181,570 

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G3,104 

a08|423 

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320.307 

looisio 

1II).0DD 
73,000 
M.U0.1 

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;;,,,,;; 

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c 


Years  ended  Seplem 
ber  30th. 

1831 
1833 
1833 

*1824  j 

1825 
1826 
1827 
1828 
1829 
1830 
1831 
1833 
1833 
1834 
1835 
1836 
1837 
1838 
1839 
1840 
1841 
1843 

1 

Imports  and  Ek 

orts  of  Bfifir,  Ale  and  Porter 

Spirits 

nd  Wines  Into 

nd  from  the  United  Stales  during  the  years  1821  to 

842  inclusive. 

1 

1 

IMPORTS. 

fore.cn   exports. 

DOMESTIC     EXPORTS. 

1 

POBTKB. 

BPIBITS. 

WIH8. 

■«'^;S/»" 

,v«ns. 

SSUfc-S: 

m 

Him 

F«-G«i«. 

F™««b«ll.UH... 

P,..0„,,,,          '     B.»..b.,«.»U. 

lIwIoiT 
70.088 

Lmto. 

10^783 
19,102 

FromOnln. 

y^caoiMi.. 

(Wl«-. 

Dc««. 

n': 

OdklDI- 

i;a7D,'o8i 

000,988 

8;505;a38 

,,.».„.  ;    o.n.... 

».,b^    |o.«™,. 

143,558 

asslToi 

103,800 

SoUv*. 

«130.S8I 
124,140 
89.01S 
151,1U 

840.701 

loo^oas 

10&,110 
108,«0 

8T.807 

18«3 

•1824 j 

1828 
1820 
1880 

184S 

T2.*18 
118.001 
115,183 

Moog 
leiiu 

IU,UM 

»s,4oa 

160.770 
ISOisTO 

|90,D.-S0 

aosisM 
a«i,ios 

isaiaw 

c 


Imports 


*1843 
1844 
1845 
1846 

tl847] 

1848 
1849 
1850 
1851 
1853 
1853 
1854 
1855 
1856 
1857 
1858 
1859 
1860 

tl861  j 

1862 
1803 
1864 
1865 
1866 
1867 
1868 


BEER,  ALE  AND  PORTER. 


In  Casks. 


Gallons.       Dollars 


6,206 

13,379 

108,0()6 

158,742 

48,760 

42,881 

52,846 

25,366 

85,541 

93,564 

18,138 

52,906 

369,805 

481,934 

442,103 

528,642 

359.140 

344,82(i 

244,352 

151,969 

7,374 

295,080 

295,62:? 

336,842 

125,361 

50,536 

107,503 

163,706 


$2,981 
6,749 
96,598 
152,146 
45,335 
17,092 
32,463 
16,110 
63,921 
41,046 
8,841 
20,933 
134,117 
194,7()5 
190,554 
221,290 
146,095 
138,224 
102,509 
61,576 
3,532 
198,883 
221,850 
261,672 
61,672 
20,89i 
45,996 
86,233 


In  Bottles. 
Gallons.     I    Dollars. 


Brandy. 


68,492 
117,996 


109,724 
119,262 
179,825 
132,503 
264,028 
361,877 
486,541 
759,676 
798,183 
752,229 
927,042 
734,223 
1,037,393 
1,003,593 
560,228 
12.622 


209,947 
529,691 

577,837 
711,976 


Gallons. 


$63,123 
116,965 


60,915 
91,342 
134,431 
112,381 
200,848 
248,599 
338,559 
432,892 
557,808 
520,343 
028,550 
485,039 
632,975 
688,201 
359,534 
10,422 


172,823 
472,077 
542,781 
645,123 


191,832 
782,510 
1,081,314 
963,146 
331,108 
623,309 
1,370,111 
2,064,091 
4,145.802 
3,163,783 
2,751,947 
3,854,956 
2,152,441 
1,024,497 
1,715,717 
1,513,328 
1,180,484 
2,528,356 
2,616,555 
1,077,470 
96,610 
873,227 
501,007 
693,043 
188,621 
817,743 
657,688 
379,369 


Dollars. 


$106,267 
606,633 
819,540 
839,229 
355,451 
575,631 
1,135,089 
1,347,514 
2,659,537 
2,128,679 
1,792,968 
3,251,408 
2,255,397 
1,479,362 
2,859,342 
2,527,262 
2,232,452 
3,262,058 
3,938,041 
1,728,209 
131,220 
549,345 
743,727 
915,946 
253,619 
981,010 
959,563 
590,986 


Gallons. 


2.' 
4 
6< 
6 

i: 
3: 
6' 

7! 

7! 

9t 

8t 
1,0 
1,1' 
1,1! 
l,5f 
1,9. 
2,1. 
3,1- 
2,8i 
2,7( 

i,i; 

1,0( 
6( 

1- 

6( 
4 
5: 


*  9  Months. 

+  July  1  to  Nov.  30,  1K4C). 

t  Act,  1857.     Act,  18G1. 


Dec.  1,  1846,  to  June  30, 1847 


*  Included  in  Beer,  &c.,  in  CaskB. 


Imports!  and  Exports  of  Beer,  Ale  and  Porter; 


u    ^■ 


j:t 


Spirits  and  Wine,  into  and  from  the  United  States  during  the  Years  1843  to  i868  inclusive. 

DOMESTIC    EXPOB 


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Imports  and  Exports  of  Beei",  Ale  and  Portep,  Spirits  and  Wine,  into  and  from  the  United  States  during  the  Years  1869  to  1883  inclusive. 


i 

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